Montreal, Canada - March 22, 2020: Roblox logo and app on a mobile screen in a hand. Roblox is a multiplayer online video game and game creation system that allows users to design their own games
Roblox (NYSE: RBLX) stock price bounced after finding support at $26, which was the December 2022 low. The stock price for the video game company now sits 7% above the $26 support level. At the time of writing, the shares were trading at $28.29, up 1.55%.
The bullish sentiment is spreading throughout the US stock market after the latest job data. The Nasdaq100 index is currently up 824 points from its monthly low. The S&P500 also has also seen a 170-point increase from its last week’s lows.
On 18th August, Truist Securities dropped its price target from $45 to $35 and maintained its “Hold” rating for Roblox. A day earlier, Citigroup also lowered Roblox stock price target to $51 from $53 while maintaining its “buy” rating.
Roblox has been under a lot of heat recently. The online video game platform was accused of child abuse in a report published by The Bear Cave in 2022. The report also discussed how Roblox was unprofitable, faced tough competition, and increased compliance costs. This negative press has quite adversely affected the stock price.
The price chart for NYSE: RBLX shows that the price has been trading inside the $22-$55 range since May 2022. The price has retested the top of the range once before but got pushed back down by the bears on 11th August 2022. The price is currently trading 24% below the 200 MA, which is a sign of weakness.
The Roblox stock price forecast will flip bearish if the price breaks below the $26 support level. In this case, I expect a 17% correction to the bottom of the trading range. The outlook will flip bullish if the price breaks above the range mid of $34.7.
In the meantime, I’ll keep sharing the updated Roblox forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Aug 30, 2023, 20:58 BST 20:58