+8.49% for Robinhood stock as regulatory approval for IPO underwriting sparks gains

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Robinhood jumps 8.49% today to $90.88

Highlights

Robinhood gained regulatory approval to act as an IPO underwriter, expanding its business beyond traditional distribution roles.
May metrics revealed strong platform growth with 27.7 million funded accounts, $377 billion in assets, and a 75% surge in equity trading volume.
Technical outlook is mixed but leans bullish short- and mid-term, with price forecasted to trade between $79.55 and $95.18 and 65% probability of upside.

Underwriting approval boosts revenue diversity amid robust account growth

Robinhood Securities has secured regulatory approval to act as an underwriter for initial public offerings, a move that enables Robinhood to directly participate in IPO origination and diversify its revenue beyond a distribution role. This significant operational expansion arrives alongside a surge in platform fundamentals, with May data showing 27.7 million funded customer accounts, $377 billion in customer assets, $5.6 billion in net deposits, and a 75% jump in equity trading volumes to $315 billion. Additionally, company director Meyer Malka executed a $20 million insider share purchase as the underwriting authority was granted, further underscoring positive sentiment following this regulatory milestone.

Mixed momentum persists as price holds above near-term supports

On the technical front, HOOD is trading above the MA-20 ($83.23) and MA-50 ($85.61), while remaining below the MA-200 ($103.08) on the daily chart. The Ichimoku Kijun at $83.79 acts as immediate support. Momentum signals are mixed: the MACD indicates a strong sell, ADX is neutral, RSI stands at 49.6 (sell), with Stoch RSI and CCI both neutral. Bull/Bear Power (BBP) shows an overbought condition, suggesting buyer strength intraday, while the Awesome Oscillator signals a sell bias, reflecting short-term momentum shifts.

Upside favored as breakout risk tempers with defined volatility band

For the coming sessions, HOOD is expected to trade within a volatility band of $79.55 to $95.18. The probability of an upward move is estimated at 65%, suggesting a greater likelihood of price stabilization or gains within this corridor. A sustained break above $95.18 may open room for additional upside, while a close below immediate support at $83.79 could trigger a move toward the lower end of the range near $79.55.

Viktoras Karapetjanc, expert at Traders Union, sees Robinhood’s regulatory breakthrough as a game changer for its business model. He believes robust user growth and the surge in platform assets reinforce the company’s operational strength. While technical momentum appears mixed, strong inflows and positive insider activity support a constructive bias. "The IPO underwriting approval, combined with rising deposits and assets, positions Robinhood for continued upside, and I see a 65% chance of further gains if $83.79 holds as support."

Earlier, analysts noted that Robinhood shares were experiencing sustained downward momentum amid persistent selling pressure and technical weakness. The present reversal in trend, driven by regulatory gains and insider confidence, shifts the outlook toward a higher probability of stabilization or further upside, making price action around the $95.18 resistance level a pivotal indicator for potential continuation.

Source of Data: HOOD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.