Roblox stock price (NYSE: RBLX) recovered approximately 21% from the recent swing high and formed a double bottom pattern. It took support near $25.00 and began to recover from the 52-week low.
RBLX stock price is approaching the 50-day EMA and is trying to climb above to reverse the short-term trend. It recovers by forming higher high candles that indicate that bulls are active and returning back on track.
In August, Roblox Corporation stock price fell badly after the release of the previous quarter’s earnings. It showed a massive gap down and broke the crucial support of $33.00 which hurt the investors’ sentiments and invited further decline.
RBLX share price lost all its previous gains and returned back to the demand zone. Previously, Roblox share price took support multiple times in the range between $21.00 to $25.00.
Luckily, every time buyers came forward, they succeeded in pushing the price higher and showed a decent rally. Therefore, this time, a similar pattern might be repeated.
Roblox stock price closed the previous session at $30.46 with an intraday rise of 2.15%. The market capitalization stood at $18.79 Billion.
Will Roblox Stock Price Break the Neckline?
Roblox stock price tested its long-term demand zone and displayed a double-bottom bullish reversal pattern. The confirmation of the bullish trend reversal will come when buyers succeed in breaking the neckline hurdle.
RBLX stock price pattern is mildly bullish but it seems like a temporary pullback. So, the possibility of a neckline breakout is low.
However, if the broader market indices and other stocks of gaming sectors show some positive momentum, the RBLX shares might continue recovery and fill the previous gap.
RBLX Stock Price: When Will the Next Phase of Recovery Trigger?
RBLX stock price formed a bullish engulfing candle on a weekly time frame. Buyers who succeed in giving the follow-up indicate mild bullishness. However, the next phase of recovery is only possible when buyers succeed in breaking the $33.00 hurdle.
The MACD is slow and steady on the rise and showcases the presence of buyers. The RSI at 61 slopes upward denoting the strength of bulls.
The supertrend is also indicating bullishness and favors the bulls. However, the confirmation of strength from the price action is awaited.
Conclusion
Roblox stock price (NYSE: RBLX) recovered approximately 21% after hitting the 52-week low. However, the price reached the 50-day EMA so it will be difficult for the bulls to continue the recovery.
The analysis suggests that RBLX stock price is at crucial resistance. It is too early to judge if it has turned bullish. Therefore, the investors must remain cautious in the coming months.
Technical Levels
- Resistance Levels: $33.36 and $40.00
- Support Levels: $24.81 and $21.69
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2023/10/07/roblox-stock-formed-double-bottom-rblx-stock-turning-bullish/