Robinhood (HOOD) under pressure

Our December 26, 2025, Straight from the Chart post cited that Robinhood Markets (HOOD) was consolidating within a bullish trend but with risks from a developing head and shoulders top relative to the S&P 500 and a potential overhang from two bearish engulfing patterns on its weekly chart.

The bad news is that the risks to HOOD are playing out with the absolute price chart following the relative price chart and breaking lower from a mid 2025 into early 2026 head and shoulders top. This has derailed a longer-term positive setup for HOOD and opens the risk for deeper downside. We are watching the mid to low 60s into the mid to low 50s.

This week's weekly downside gap at 95.88-98.37 provides an overhang and the stock has already dropped below the 50% and 61.8% retracements of the April-October 2025 rally near 91.76 and 77.10, respectively. The next targets are near 66.91 (prior high from February 2025), which marks an important support, and 52.50 (head and shoulder top count).

Chart 1: Robinhood Markets (HOOD) (top) and versus the S&P 500 (bottom): Weekly chart

The 61.8% retracement of the mid 2022 into late 2025 rally at 62.98 and a 161.8% extension at 56.00 also provide downside risk levels to watch. The 161.8% retracement is generated from the October-November decline projected from the December peak.

Chart 2: Robinhood Markets (HOOD) (top) and volume (bottom): Weekly chart