Looks like it might be time to short this based on the technicals.
March 21 : I posted this comment two days ago. I am updating the post to show what technical picture I am looking at, which is making me lean towards bearish in the short to medium-term.
Weekly Technicals
On the weekly candles you can see how the price action of RBLX has formed a double top near a long-term resistance level. The double top coincided with a bearish divergence and was followed by RSI and KDJ dropping into bearish territory. This is when their values drop below the 50 level. All of these aspects are what make the chart look bearish on the weekly candles.
Daily Technicals
The daily candles are also showing the bearish divergence coinciding with a double top. All of the major indicators, like KDJ, RSI, and MACD, are in bearish territory.
We are seeing oversold conditions, so we may see a rebound in the very short term. But until I see MACD climb above its histogram, then I wouldn't have any confidence in a true rebound back to the previous highs near the double top.
Conclusion
This company's share price has experienced a nice rally over the past 12 months. The rally could always continue. We could see a rebound in the short term. But as for the past few weeks, this is the first time in a long time that the technicals have looked bearish.
Perhaps the rally will take a break for a while? Either way, until the technical picture looks better, I will be leaning bearish towards this ticker.
So, what do you think? Do you think RBLX will rebound very soon? Or will it fall further? Are you bullish or bearish?
Good Luck Trading
As always, I am not a financial professional, and this is not investment advice. Be careful and be patient. Dont anticipate the market. Rather, participate in the market. Don't invest money that you can't afford to lose. Give some of your investments time and know when to cut your losses.
Don't be greedy. Don't invest in anything you don't understand. Don't put all of your eggs in one basket. Don't listen to the hype. Don't fomo or panic into or out of trades. Do your own due diligence. And just follow the trends. A trend is your friend. Good luck trading.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Salmon Klein : Do you think it is collapsing? it had a good earning report, I don't get why it is dropping so heavily. I think it still has support at around 35 but no sure anymore on this one...
Ultratech Salmon Klein: generally get in now possibly be ready to dca if tanks one day but either way roblox seems perfect to sell on earnings then let it fall back idk maybe hold its a cool stock that runs frequently
SpyderCallOP Ultratech: It does indeed have some good runs. Great for swing trading. But as for a long-term investment, I don't see roblox being one of those mega growth companies. I don't even see it as being as growth worthy as other video game companies.
I could always be wrong, of course.
MonkeyGee : it's triple bottom and above MA
SpyderCallOP MonkeyGee: What timeframe are you looking at?
SpyderCallOP MonkeyGee: Like daily candles or what?
SpyderCallOP MonkeyGee: I just updated the post to show how I mapped out the technicals on my chart. I also put a quick explanation about why I'm leaning bearish.
SpyderCallOP Ultratech: I just updated the post with some charts and explanations so you can see my thesis on flipping bearish.
MonkeyGee SpyderCallOP: I see it now. You are right! thank you
Salmon Klein SpyderCallOP: that's the point I though this could be a huge growth company but since earnings behaviour is all bearish. I got a minimal profit and sell before getting lower...but now I was wondering if to jump in again for a long swing but yeah...this one is very volatile and bearish so probably stay away first
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