$Robinhood(HOOD.US) dropped from above 120 to 99 over four trading days, closing below the 100 mark today. The 9-day MA at 109 and the 21-day MA at 107 are both acting as overhead resistance, with RSI at 48, not yet oversold.
The key reference level here is the 50-day MA at 93.4: if it holds during the pullback, it's a normal shakeout after the sharp high-level drop, with the first rebound target being the moving average resistance around 107; if it breaks below 93, the profit-taking from this previous rally will likely go deeper, with the previous platform at 89-90 serving as the next support.
No need to guess the bottom on position sizing. Buying in batches above 93.4 offers a risk-reward ratio of roughly 1:3. Stop loss on breakdown, don't fight the sharp decline.
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