HOOD Stock Price Action: Key Chart Patterns and Trading Levels

Robinhood Markets (HOOD) has become a focal point for traders in early 2026, following a volatile reaction to its fourth-quarter and full-year 2025 earnings report. While the fintech giant delivered record annual revenue of $4.5 billion and a solid earnings beat, the stock has faced downward pressure, trading near the $85 mark. For active market participants, this volatility presents both risk and opportunity as the stock tests critical technical levels.

Understanding the current price action requires looking beyond the headlines. While the fundamental growth story remains intact—driven by a surge in Gold subscribers and international expansion—the technical picture suggests a battle between bulls defending the $80–$85 support zone and bears eyeing a deeper correction. This article breaks down the key chart patterns, support and resistance levels, and actionable strategies for trading HOOD stock in the current market environment.

Fundamental Context: The Catalyst for Volatility

Before diving into the charts, it is essential to contextualize the recent moves. On February 10, 2026, Robinhood reported Q4 earnings that beat EPS expectations ($0.66 vs. $0.60 forecast) but missed slightly on revenue ($1.28 billion vs. $1.34 billion). This revenue miss, primarily attributed to a slowdown in crypto trading volumes towards the end of the year, triggered an immediate sell-off.

However, the longer-term thesis remains strong. The company reported a 52% year-over-year revenue increase for the full year of 2025 and saw its Gold subscriber base grow to 4.2 million. This divergence between long-term growth and short-term market reaction often creates tradeable inefficiencies, making technical analysis a vital tool for timing entries and exits.

Technical Analysis: Analyzing the Pullback

HOOD stock reached a 52-week high of approximately $153.86 in October 2025. Since that peak, the stock has been in a corrective phase, forming lower highs and lower lows. The recent drop post-earnings has pushed the price down to the $85 region, a critical area of interest for technical traders.

The Head and Shoulders Aftermath

In late 2025, many analysts identified a potential Head and Shoulders pattern forming on the daily chart. The neckline of this pattern was situated around the $105–$106 level. The breakdown below this level in early 2026 confirmed the bearish reversal, accelerating the sell-off. Currently, the stock is trading well below its 200-day moving average, which often acts as a dividing line between long-term bullish and bearish trends. Traders should now view the $99–$100 area (previous support) as a formidable resistance zone.

RSI and Oversold Conditions

The Relative Strength Index (RSI) on the daily timeframe has dipped into oversold territory (below 30) following the earnings reaction. Historically, when HOOD enters this zone, it often signals a potential relief rally or a period of consolidation. However, oversold does not mean buy immediately; it simply indicates that the selling momentum may be overextended in the short term.

Key Support and Resistance Levels

For traders managing positions or looking for entry points, identifying precise levels is crucial. Based on recent price action and historical volume profiles, here are the key levels to watch:

Immediate Support: $82.80 – $85.00

This zone represents a confluence of previous consolidation areas from mid-2025. If the stock can hold above $82.80 on a daily closing basis, it may form a double bottom or a consolidation base, setting the stage for a rebound.

Deep Support: $70.00

Should the $82.80 level fail, the next major liquidity pool sits around $70. This level corresponds to significant structural support established during the rally in early 2025. A break below $80 could trigger stop-loss selling that pushes the price rapidly toward this zone.

Resistance Zone: $99.00 – $105.00

Any bounce from current levels will likely face stiff resistance near the psychological $100 mark and the 200-day moving average. The former neckline of the head and shoulders pattern at $105 will also act as a significant ceiling. Bulls would need high volume to reclaim this territory.

Comparative Analysis: HOOD vs. Competitors

To better understand Robinhood's valuation and market position after the recent pullback, it is helpful to compare it with its primary peers in the retail brokerage and crypto exchange space. For more detailed financial data, you can check resources like Investing.com.

This comparison highlights that while Robinhood is often correlated with Coinbase due to its crypto revenue exposure, its broader fintech ecosystem (Gold card, retirement accounts) puts it in partial competition with traditional brokers like Schwab. This hybrid positioning suggests that while HOOD is volatile, it may have more diverse revenue streams than a pure-play crypto exchange.

Actionable Trading Strategies

Based on the technical levels and recent earnings data, traders can consider the following scenarios. Always remember to manage risk, as volatility can be unpredictable.

Scenario 1: The Support Bounce

If HOOD stabilizes in the $82–$85 range and shows signs of reversal (such as a bullish engulfing candle or a double bottom pattern on the 4-hour chart), aggressive traders might look for long entries.

Entry: Near $83–$85.

Stop Loss: A strict stop below $79 (allowing for some volatility wicks).

Target: First profit taking at $92, with a secondary target at the $99 resistance level.

Scenario 2: The Bearish Continuation

If the broader market weakens or if crypto sentiment sours further, HOOD could slice through the $82 support. In this case, momentum traders might look to short the breakdown.

Entry: On a confirmed daily close below $82.

Stop Loss: Back above $86.

Target: The $70 structural support level.

Conclusion: Waiting for Confirmation

HOOD stock is currently at a pivotal juncture. The record earnings for 2025 demonstrate the company's ability to scale, but the immediate market reaction highlights the risks associated with high-growth fintech stocks in a fluctuating crypto environment. Investors are advised to watch the $85 level closely. A hold here could signal that the worst of the post-earnings sell-off is over, while a failure to hold could open the door to significantly lower prices.

For ongoing updates on market movements and analyst ratings, reliable sources like Nasdaq.com provide essential real-time data.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Trading stocks involves risk, and you should consult with a financial professional before making investment decisions.