Robinhood stock price has been in a tailspin since the release of its Q3 earnings report. As a result, the stock of the online trading platform has plummeted almost 17% in the last 10 days. However, a bounce could be around the corner as the shares appear to be quite oversold.
The third quarterly earnings of the online broker showed that while the trading revenue increased 29% in the third quarter, it still remained at $467 million against the market estimates of $480 million. In addition, there was also a 16% decline in the monthly active users, which came at 10.3 million.
Consequently, Robinhood stock price has failed to join the ongoing rally in the tech stocks. The stock is currently trading 38.74% below its yearly highs.
If we analyze the NASDAQ: HOOD chart on a higher timeframe, we can clearly see bullish divergences on the RSI and Money Flow Index indicators. These types of divergences usually form at the market bottoms. Therefore, there is a high likelihood that the stock will bounce to fill the price gap that lies above $8.85 in the coming days.
