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Robinhood Markets’ HOOD stock fell more than 6% as selling spread across much of the US equity market.
The decline interrupted a recent rally that it saw and pushed the price towards $107. But there was no major negative announcement from the company that fully explains the size of the fall it saw.
Robinhood falls faster than the wider market
HOOD started trading at around $111.72 before falling as low as $105.86. It was trading at around $107.02 at the time of this writing, dropping by 6.39%.
The move became considerably steeper after it recorded a 3.27% decline to $110.60 earlier in the market.
But it was not only Robinhood that took a tumble. According to the market heatmap, loss was incurred in the areas of technology, financial, retail, and consumer companies, amongst others. Apple, Alphabet, Microsoft, and Amazon are some of the large stocks hit by a slide.
However, Robinhood’s loss was much bigger than what most major companies suffered, so possibly the broader sell-off played a significant role, but was not the only factor for decline.
The stock may also be seeing some profit-taking as it recently breached above $120.
Can HOOD stock recover from $107?
As can be seen from its chart, HOOD lost much of its early September upward momentum; its Relative Strength Index [RSI] was down to 49.65, showing balanced buying and selling pressure.
Anything above the $110 to $114 price area is the first sign that buyers are coming back, but this does not happen, it may struggle to regain its recent strength.
Near $105 is the low price level to watch, and if that cannot hold, HOOD can go down to $100. If HOOD can hold above $105, there’ll be room for a HOOD share price increase once the markets recover.
Final Summary
- HOOD stock fell 6.39% to $107.02 as losses spread across the US market.
- The $105 area provides immediate support, while $110 to $114 could limit a recovery.