Robinhood stock plunges on investor concerns about a potential trading slowdown

Robinhood (HOOD.US) stock is trading 7% lower after the owner of the popular trading app warned of a slowdown in trading activity, mainly in crypto-currencies, during the current quarter. Recently in its first quarterly report, the company showed that its quarterly revenue jumped 131% compared with a year earlier, partially thanks to retail investors who were looking for an exposure to the cryptocurrency market. Revenue from crypto trading totaled $233 million, more than half of all the transaction-based revenue of $451 million for the second quarter. Cryptocurrency’s share of revenue jumped to more than 51% from 17% in the first quarter.

Robinhood (HOOD.US) stock launched today's session with a bearish price gap, however buyers managed to halt declines around support at $45.30 which coincides with lower limit of the wedge formation and 78.6 Fibonacci retracement of the last upward wave. Source: xStation5