Robinhood's 40% Stock Plunge Fuels Cathie Wood's Big Bet On Trump's Next Move

Robinhood Markets Inc (NASDAQ:HOOD) banal looks little similar a high-tech brokerage and much similar a clearance rack. From a 52-week precocious of $153.86 to astir $91, HOOD is trading astatine astir a 40% discount to its peak, bruised by a brutal selloff that sliced 9.6% successful a azygous league and astir 22% disconnected the year.

Yet successful the mediate of this drawdown, Cathie Wood didn't flinch — she leaned in. ARK softly bought implicit 363,000 shares crossed ARK Invest funds, a $32.7 cardinal contrarian wager that blends politics, policy, and terms charts into 1 risky thesis.

The marketplace is treating HOOD similar a melting crystal cube, but Wood is looking years ahead.

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Speculation astir the projected "Trump Accounts" — $1,000 index-focused concern accounts for newborns locked until property 18 — could crook Robinhood into the on-ramp for a procreation of retail investors.

If that plumbing communicative sticks, Robinhood stops being conscionable a trading app and starts looking similar a semipermanent level play.

Chart created utilizing Benzinga Pro

Trending: Blue-chip creation has historically outpaced the S&P 500 since 1995, and fractional investing is present opening this organization plus people to mundane investors.

Technically, HOOD is underwater crossed astir each large moving average.

At $91.10, the banal sits good beneath its eight-day ($100.54), 20-day ($108.41), 50-day ($116.52), and adjacent the 200-day ($104.48) — a textbook bearish stack.

Momentum is inactive antagonistic with the MACD (moving mean convergence/divergence) indicator astatine a antagonistic 6.52, but the RSI (relative spot index) adjacent 25 signals heavy oversold territory, a portion wherever crisp bounces often begin.

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This isn't a leader buy; it's a patience play. Watch $85–$88 arsenic a imaginable floor. A palmy clasp determination with improving momentum could acceptable up a alleviation rally backmost to the 200-day adjacent $105, and aboriginal toward $115 if buyers regain control. Fail that zone, and the occurrence merchantability gets colder.

Right now, HOOD feels broken. But betwixt a stretched illustration and a imaginable argumentation catalyst, this could beryllium the benignant of disfigured setup that breeds a memorable rebound — if the marketplace blinks first.