The Robinhood (NASDAQ: HOOD) stock price jumped by more than 24% on Tuesday as investors cheered the company’s plans to offer more trading opportunities to investors. The shares ended the day at $15.90, which was the highest it has been since January this year.
24/7 trading from Robinhood
Robinhood has been one of the worst-performing stocks in the financial sector as its shares crashed by almost 90% from its all-time high. Its market cap dropped from over $50 billion to less than $8 billion.
The relentless sell-off happened after reports said that the firm was considering offering more trading opportunities to both retail and institutional traders.
It will do that by letting people trade on a 24/7 basis. By so doing, the firm will be solving some of the biggest challenges in the financial services sector. The challenge is that the regular session is usually open for a very small amount of time every day.
As a result, many potential investors and traders don’t have a lot of time to day trade since they are usually at work. Therefore, the stock rose sharply because analysts expect the move to lead to more revenue for the company.
Robinhood stock price also rose because of the strong performance of cryptocurrencies. Bitcoin has remained stubbornly above $47,000 while Ethereum is trading above $3,380. These prices are substantially higher than their lowest point this year.
Therefore, the HOOD share price is rising as investors predict that the company’s cryptocurrency volume will rebound in the coming months if the trend continues.
The stock is also rising because of the strong performance of the stock market. In the past few weeks, most stocks have been in an uptrend even after the Federal Reserve warned about higher interest rates.
Robinhood stock price forecast
The HOOD stock price has been in a bearish trend for months. But a quick look at the four-hour chart shows that the stock may have bottomed. For one, it has formed a strong support at around $10, where it struggled to move below. The stock managed to move above the key resistance level at $15.40, which was the highest level on February 4th.
Therefore, there is a likelihood that the HOOD share price will keep rising as bulls target the next key resistance level at $20. This view will be invalidated if the stock crashes below $13.
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