Roblox (RBLX-N, yesterday’s close $89.95) had a sharp decline from $141.60 in November, 2021 to $21.65 in May, 2022 (A-B), recovered to its falling 40-week moving average (40wMA – C) and then settled in a large horizontal trading range mostly between $25 and $47 (dashed lines).
The stock had a breakout from this range and reached a high of $75.74 in February (D), but was overbought at that time. It pulled back to its rising 40-week moving average (40wMA) and the rising trendline near $51 (solid line – E), and then resumed the uptrend, reaching a recent high of $85.98 (F).
Once again, Roblox is becoming overbought; a minor pullback toward $75 would provide a good entry level. Only a sustained decline below the 40wMA (currently near $60) would be negative.
Point & Figure measurements provide a targets of $94 and $99. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com