Robinhood's 40% Stock Plunge Fuels Cathie Wood's Big Bet On Trump's Next Move

Core Viewpoint - Robinhood Markets Inc (NASDAQ:HOOD) is experiencing a significant decline in stock price, trading at approximately a 40% discount from its 52-week high of $153.86, currently around $91, following a selloff that resulted in a 9.6% drop in a single session and nearly 22% year-to-date loss [1]. Group 1: Stock Performance and Market Sentiment - The stock is perceived as a "melting ice cube" by the market, indicating a lack of confidence in its current valuation [3]. - Cathie Wood's ARK Invest has made a contrarian move by purchasing over 363,000 shares, amounting to a $32.7 million investment, suggesting a belief in the long-term potential of the company despite current challenges [2]. - Technical indicators show that HOOD is trading below all major moving averages, indicating a bearish trend, with the stock price at $91.10 compared to the eight-day ($100.54), 20-day ($108.41), 50-day ($116.52), and 200-day ($104.48) averages [4]. Group 2: Technical Analysis and Trading Strategy - The MACD indicator is at a negative 6.52, indicating continued negative momentum, while the RSI is near 25, suggesting the stock is in deep oversold territory, which could lead to potential price rebounds [5]. - Traders are advised to monitor the $85–$88 range as a potential support level; a successful hold in this area could lead to a relief rally towards the 200-day moving average near $105, and possibly up to $115 if buying momentum improves [6]. - The current market sentiment around HOOD is described as "broken," but the combination of oversold conditions and potential policy catalysts could create opportunities for a rebound if market conditions shift [6].