Robinhood's Longer Trading Hours Don't Make the Stock Any More Attractive

Here's what we see on the charts.

The trading platform/app Robinhood Markets (HOOD) attracted attention and heavy volume Tuesday when the company announced it would extend its trading hours -- and moves closer to offering 24-hour trading in stocks and other instruments. But has this news made a meaningful difference to HOOD's charts and indicators? Let's check.

In our last review of HOOD back on Jan. 31 we wrote that, "Purchases and sales by Cathie Wood attract a lot of attention. Prices could rebound to the $22 area and probably higher. Aggressive traders could long HOOD risking to $9. This rally may only last a month so don't get too attached." With hindsight we can see that prices did not travel very far and the bounce lasted less than a month.

Let's look at the charts again. 

In this updated daily bar chart of HOOD, below, we can see that the shares managed to rally above the 20-day and 50-day moving averages. The daily On-Balance-Volume (OBV) line shows some improvement from the end of January.

The Moving Average Convergence Divergence (MACD) oscillator is finally back to the underside of the zero line. 

 

 

In this weekly Japanese candlestick chart of HOOD, below, we fail to find a bottom reversal pattern.  

 

 

 

In this daily Point and Figure chart of HOOD, below, we can see a potential upside price target of $28 but we also see a fair amount of overhead chart resistance. 

 

 

 

Bottom-line strategy: HOOD does not turn a profit yet and I am not sure that longer trading hours will capture more payments for order flow. Not to mention the charts are not all that exciting. There are better trading opportunities out there.

 

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