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Home›Fibonacci›3 Top Robinhood Stocks to Avoid

3 Top Robinhood Stocks to Avoid

By Wanda M. Luce
June 23, 2022
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Robinhood Markets (NASDAQ:HOOD). The app-based brokerage has made a name for itself as a platform for brash, rule-bending, and bullish traders over the past couple of years. But from the best of days to today’s more uncertain environment, it’s time for investors to steal three of Robinhood’s top stocks as bear trades to profit.

Is it or isn’t it? Also depending on who we listen to, or what strategies we rely on, today’s stock market could set up a new bull market cycle. Investor’s Business Daily indicates that Wednesday is the third day of an attempted rally in the S&P500 and Nasdaq. But this is only a first step. And there is no guarantee that a bullish phase will emerge or last for that matter.

Of course, many others insist that the market is simply securing a well-deserved dead cat bounce in a bear market that is just beginning. Given that, and without putting the horse in front of the car, here are Robinhood’s top three stocks that are showing up as bearish shorts, off and on the price chart, and much to the chagrin of their bullish cheer squad.

Teleprinter Company Price
MSFT Microsoft $256.10
TWTR Twitter $38.75
WMT walmart $122.70

Robinhood Stock: Microsoft (MSFT)


Source: Charts from TradingView

Microsoft (NASDAQ:MSFT) is the first of our Robinhood stocks to position itself as a cash cow for bearish shorts.

Since November, the bear cycle in MSFT stock has lost 30% of the stock to its recent low. It’s a classic correction and maybe even slightly bigger for a company of Microsoft’s size and market dominance. But bear market lows rarely serve to please the masses like Robinhood’s bullish base. Sorry.

What’s more, and despite its decline, this Robinhood action remains historically expensive. Microsoft’s leading P/E of nearly 24 and a higher price/sales multiple of 10, also more than double the stock recovered for most of the previous decade, are fair warning.

MSFT’s monthly chart also reveals a stock that is at risk of turning into a more threatening bear.

Technically, stocks failed their Covid trendline in February. In March and April, former support turned out to be resistance and after the May doji decision candlestick, June signaled that there was more gloom ahead for this Robinhood stock.

Look to take advantage of a move towards Fibonacci and trendline support around $194-$214 using a medium-term bearish sell spread.

Twitter (TWTR)

Twitter (TWTR) has an extended downtrend with stocks expected to improve bearishly in the coming weeks
Source: Charts from TradingView

Twitter (NYSE:TWTR) is the next of our Robinhood stocks that is sure to disappoint bulls and enrich bearish traders.

Unless you’ve been in suborbital space on Elon Musk’s SpaceX spacecraft for the past few weeks and disconnected from Wall Street, you know that TWTR stock has been the subject of the You’re here (NASDAQ:TSLA) Unstable and contingent CEO takeover.

Robinhood stock investors applauding Twitter’s upside potential can argue that Elon stands to lose a boatload if he walks away from the altar. And honestly, while it’s not that simple, a failed deal could cost him $1 billion. Still, as the richest person in the world and a man known for taking the road less travelled, don’t discount the possibility of a nasty breakup.

Technically, this Robinhood stock is also not bull friendly. Stocks have been on a weekly downward trend for almost a year and a half. More recently and after outmaneuvering buyout investors, TWTR has been busy consolidating sideways under Elon Musk’s reactive price spread announced in early April.

Coupled with a weekly downtrend Stochastic, the Bollinger Channel and Band are supporting around 25% less and TWTR’s Covid-related 62% Fibonacci level has already broken twice, trust this pressured price chart . And then do yourself a favor and put a down payment on a Tesla with the proceeds of a bear split into that Robinhood stock.

Robinhood Stock: Walmart (WMT)

Walmart (WMT) consolidates lower below prior long-term support
Source: Charts from TradingView

walmart (NYSE:WMT) is our latest Robinhood stock and one where buying value benefits bearish investors.

WMT stock comes in at No. 5 for stocks preferred by the broker’s bullish clients. Walmart’s strong reputation comes despite May’s revenue shortfall and the release of lower views and shrinking 2022 earnings forecasts as inflation and customers gravitating towards low-margin staples played against the market. retail giant.

The price chart also emphasizes that investors would be wise to forego buying the drop in price of this Robinhood stock following the report.

Technically, WMT’s initial 11% fallout has made its way into more troubling price consolidation as stocks now crack below the long-term trend and key Fibonacci support.

Combined with the monthly Stochastics of this Robinhood stock also rolling lower into neutral territory, a much larger correction could be underway.

The next logical area of ​​price support is the WMT retracement and the lower Covid zone ranging from around $93 to $106. And from today’s $121 level, it’s a price drop worth buying, with a bearish sell spread!

As of the date of publication, Chris Tyler had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

The information offered is based on the observations of Christopher Tyler and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related thoughts, follow Chris on Twitter @CAT_Options and StockTwits.

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