RBLX Stock Price: Can the Bulls Sustain Recovery Beyond $40?

Summary:

The two-day recovery in the RBLX stock price lacks momentum, making many wonder if the march above $40 is feasible in the short term.

The RBLX stock price is off its all-time lows, following the second day of gains on the stock. The RBLX stock price is up 0.25% but still seems to be ending the week lower as the two successive days of gains have not produced the momentum required to see a strong recovery.

The decline in the Roblox stock price will mean several things to several people. First, it will be an ongoing nightmare for those who bought into the stock when it was flying high above $100. But for discerning investors looking for bargain deals, the Roblox stock price may be at attractive levels.

One of those who certainly think so is Cathie Wood’s Ark Invest, which purchased 739,082 shares of Roblox last week as part of a playbook that saw the hedge fund snap up stocks of other pandemic gainers such as ROKU, Shopify and Zoom.

Sixteen Wall Street analysts have set a 12-month median price target of 60.00, with targets at price extremes of 100.00 and 32.00. This gives the stock a potential upside of 87.96%. The question now is whether the stock has bottomed out or not. So what’s the current outlook?

RBLX Stock Price Prediction

Failure to achieve sufficient bullish momentum to take the price above the 36.14 resistance will lead to a further price collapse, targeting 26.28 (127.2% Fibonacci extension level). 21.13 (141.4% Fibonacci extension) will become the next available target if the decline continues. Finally, if this price objective is attained, 13.59 (161.8% Fibonacci extension level) could become a new all-time low.

On the other hand, the immediate upside target at 36.33 (14 March 2022 low) must be taken out by the bulls for a recovery towards 39.71 (8 March and 19 April high) to be made possible. Additional recovery brings 42.94 into the mix (19 April high) before 43.06, and 48.48 (3 March high) make themselves available as the other targets to the north.