HOOD is in a strong uptrend above its 50-day and 200-day moving averages, with a pullback to an upward 50-day moving average and RSI above 40, which the speaker calls a favorite setup and a potential buy for the next upward wave; if RSI falls below 40, it signals distribution and negative momentum.

The first one is Robin Hood, of course. Robin Hood is very similar...he's in his own unique category, isn't he? I mean, technically it's within the investment services category along with many other brokers, but they clearly have a specific business plan to attract active investors.

Certainly, they are targeting younger investors. Many people, or what is called the Robin Hood audience, learned about investing during the Covid period through Robin Hood.

Does the graph show any kind of optimism? Again, their earnings reports are due in two weeks, but technically speaking, I find the situation interesting because we are not in a state of flux between moving averages.

We are actually above the 50-day and 200-day moving averages. It was only last August that we managed to get back above the 200-day average. We have seen a few instances of a pullback to an upward 50-day moving average.

So, this is one of my favorite technical setups that I look for: a strong uptrend, and we are above the 200-day moving average, with a pullback to an upward 50-day moving average.

This means that we have seen some weakness in the short term. Does this give me an opportunity to buy at this short-term weakness and take advantage of the next upward wave? It's similar to what we saw here in late August and here again in mid-September.

What interests me about this chart, aside from the full pullback to the 50-day ascending moving average, is the fact that the Relative Strength Index (RSI) is still positive. The Relative Strength Index (RSI) remains above 40 while the price is declining slightly.

Therefore, we are testing the moving average support, while the RSI remains above 40. If the RSI falls below 40, it means we have entered a distribution phase. This means there is too much negative momentum .

But if we can maintain the support of the moving average and the Relative Strength Index stays above 40, this will be a more positive situation. Therefore, it could be an interesting setup with a higher bottom level just at the 50-day moving average, which is trending upwards.