Regulatory approval helps Robinhood stock rally 4.28% on session highs

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Robinhood surges 4.28% to $90.06 today

Highlights

Robinhood secured regulatory approval to underwrite IPOs, enabling direct access to primary capital markets and diversifying potential revenue streams.
Platform assets surged 48% year-over-year to $377 billion, with 27.7 million funded accounts and $5.6 billion in May net deposits reflecting accelerating user growth and engagement.
HOOD shows bullish intraday momentum with strong buyer activity, expecting to trade between $84.46 and $95.66 with high breakout probability above resistance.

Expansion in capital markets exposure as regulatory approval boosts activity

Robinhood has received regulatory approval for its securities division to operate as an underwriter for initial public offerings, significantly expanding its business by allowing direct participation in primary capital markets and opening new revenue opportunities. This development arrives as platform assets have reached $377 billion, showing a 48% year-over-year increase alongside 27.7 million funded customers and $5.6 billion in net deposits for May, underlining rapid growth in customer engagement and platform scale. Additionally, equity trading volumes surging 75% and options contracts rising 29% in May further support the company's strong transactional activity and underline momentum in its core trading business.

Bullish bias and overbought signals as short-term momentum persists

HOOD is trading above its MA-20 ($85.57) and MA-50 ($85.21) on the hourly chart, but remains below the MA-200 ($102.96) on the daily timeframe. The Ichimoku Kijun at $85.19 offers notable immediate support. For momentum, the MACD is in Buy mode while the ADX is Neutral, suggesting moderate trend strength. The RSI is at 54.04 and the CCI also points to ongoing buying momentum; however, the Stoch RSI stands at Neutral and the Bull/Bear Power (BBP) is Overbought, reflecting strong intraday buyer dominance but some caution on stretched conditions. The Awesome Oscillator is Neutral, and the overall setup is marked by robust price action and increased volatility.

Limited downside risk as breakout above resistance drives outlook

Over the next several days, HOOD is expected to trade within a typical volatility band between $84.46 and $95.66. The probability of an upward move is very high, while the likelihood of a downward move is very low. The baseline scenario is for HOOD to stabilize in this corridor, with bullish momentum gaining further confirmation if price breaks out above $95.66, and downside risk emerging only if shares slip beneath the $84.46 support.

Viktoras Karapetjanc, Senior Analyst at Traders Union, sees Robinhood’s regulatory approval to underwrite IPOs as a strong fundamental catalyst that broadens the company’s revenue base. He believes the surge in platform assets and robust trading volumes reinforce positive sentiment and signal sustained user growth. Technically, the price action remains constructive above key supports, with momentum indicators confirming underlying strength. Karapetjanc expects bullish momentum to prevail if $95.66 is breached, with limited downside risk while $84.46 holds. "Robinhood's structural gains and expanding business scope set the stage for continued upside, and I remain confident in further positive price action."

Earlier, analysts noted that expanded retail access to major IPOs through platforms like Robinhood could lead to increased investor participation and heightened trading volatility. Robinhood’s regulatory approval to underwrite IPOs, coupled with record asset growth and transactional momentum, now adds a powerful growth catalyst that traders should monitor closely—particularly watching for confirmation of bullish strength if HOOD decisively breaks above the $95.66 resistance level in the coming sessions.

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.