Roblox Stock Looks To Be Heating Up And Is Testing Resistance: What's Next?

Roblox Corp. RBLX shares are trading higher Thursday after a tweet from a Bloomberg report stating Google is lowering its cut from subscriptions on Google Play from 30% to 15%. The stock was trending throughout the day on social media sites such as StockTwits.

Roblox was up 5.83% at $83.16 at last check Thursday afternoon.

Roblox Daily Chart Analysis

• The stock is nearing resistance in what technical traders call a falling wedge pattern.
• The price has been falling and been condensed between narrowing highs and lows and now nears the pattern resistance. A break of pattern resistance could mean the stock is breaking out and potentially ready to see a long-term trend change.
• The stock trades above both the 50-day moving average (green), indicating the stock is likely facing a period of bullish sentiment.
• The 50-day moving average may hold as an area of support in the future for the stock.
• The Relative Strength Index (RSI) has been pushing higher the past few days and sits at 60. This push in RSI shows there are more buyers entering the market at a faster rate than sellers are selling the stock.

See Also: Why Roblox Shares Are Rising

What’s Next For Roblox?

Bullish traders want to see the stock continue to move higher and break out of the pattern. Bulls would like to see a period of consolidation for the stock to possibly follow with a strong bullish move.

Bear traders are looking to see the stock get rejected at the resistance level and start heading back lower. Bears are then looking to see the stock fall below the pattern support and begin to hold it as a resistance level. This could hint that the stock is ready for another strong bearish move in the future.

Photo: Roblox