Roblox Analysis and Market Prediction Hello everyone, as we all know the market action discounts everything :)
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RBLX stock has been having a great Bullish movement in the last 2 weeks where the price jumped up from the $82.23 and reached $140.55 level today, That is a 70.9% increase in under 3 weeks.
The long and short-term trends are both positive. This is looking good!
RBLX is currently making a new 52 week high. This is a strong signal. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
Possible scenarios for the market :
The market today started on a higher level at the $140 level and dropped after hitting the resistance line located at $139.10. We could be seeing a small correction for the market that could reach the $119.78 support or even the $111.69 level, But looking at the stock from a technical point of view we notice that a lot of the indicators are giving Bullish signs, which means we will probably see a battle happening at the $119.78 level between the Bears and the Bulls and the winner will determine the outcome for the market.
If the Bulls were able to gain control back then we will see the price bounce from that level and reach the $140 level again before going even further to the resistance level at $160.64.
If the Bears were able to hold control then we will be seeing the second support at $111.69 being reached before the price go back into a Bullish trend.
Technical Analysis Show :
1) The market is above the 5 10 20 50 100 and 200 MA and EMA (Strong Bullish Sign)
2) The RSI is at 71.06 trading in the overbought zone, which could indicate a small drop.
3) The ADX is at 52.22 showing a super trendy market with a positive crossover between DI+ and DI-
Support & Resistance points :
support Resistance
1) 129.44 1) 139.10
2) 124.16 2) 143.48
3) 119.78 3) 148.76
Fundamental point of view :
The Revenue has grown by 118.98% in the past year. This is a very strong growth! An Altman-Z score of 18.05 indicates that RBLX is not in any danger for bankruptcy at the moment.
Roblox is also creating a $10 million fund dedicated "to bringing high-quality educational experiences to Roblox and to support educators in using Roblox Studio in their classrooms". The company has major plans to use Roblox Studio to help teach "computer science, design, and development courses" to millions of children.
Roblox plans on expanding the whole economic system that was built around gaming into other economic activities like "high quality immersive brand advertising that is native and authentic". Advertising is only the start because ultimately shopping in virtual stores could make its way on to the Roblox platform.
This is my personal opinion done with technical analysis of the market price and research online from Fundamental Analysts and News for The Fundamental point of view, not financial advice.
If you have any questions please ask and have a great day !!
Thank you for reading.
