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Robinhood (HOOD) shares jumped as much as 16% Monday following news of the stock’s inclusion in the S&P 500 index. The addition to the benchmark, effective prior to the open of trading on September 20, 2024, signals growing institutional confidence in the brokerage platform and is expected to drive further demand for the stock.The S&P 500 inclusion marks a significant milestone for Robinhood, which went public in 2021. Analysts anticipate index funds will be required to purchase Robinhood shares to accurately reflect the index, creating a buying pressure that contributed to Monday’s surge. Investors are now watching key price levels to gauge potential support during any pullbacks.
During pullbacks, the $100 level is an initial area to monitor, possibly providing support near the falling wedge pattern’s lower trendline and corresponding trading activity as early July. A failure to defend this level could lead to a retreat to support around $78, a location near the top of a consolidation period throughout June, where investors may seek buying opportunities.
Further retracement could test lower support at $67. Investors might consider buy-and-hold entries in this region, near the February peak which aligns with a pause in the stock’s uptrend during late May.
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As of the date this article was written, the author does not own any of the above securities.
