Roblox Corp. (NYSE:RBLX) shares are trading higher Monday after B of A Securities reinstated a Buy on the stock and announced an $84 price target. The stock is attempting to reclaim an area of support it has recently fallen below and reclaim the channel it was once trading in.
Roblox was up 2.39% at $68.41 at the time of publication.
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Roblox Daily Chart Analysis
- The stock fell below the $70 level a couple of weeks ago, breaking below the support level that RBLX had held multiple times in the past. Now, the stock is looking to recover this level and trade within the sideways channel once again. Resistance may be found near the $95 level.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates the stock has been trading with bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been beginning to climb back up the past several weeks and now sits at 45. This shows that more buyers have been entering the market, and indicates some strength in the stock.
What’s Next For Roblox?
Roblox looks as though it is attempting to reclaim the key level of previous support as more buyers are moving into the stock as of late. The RSI increasing is a good sign to those looking to see a reversal.
Bullish traders are looking to see the RSI cross above the middle line and then see the stock form higher lows and work toward the $95 resistance level.
Bearish traders are looking to see the $70 level hold as resistance and for the stock to begin to dip once again. Bears want to see the RSI drop back below 30 and sit in the oversold region.
Photo: Courtesy of roblox.com
