What's Next For Roblox Stock As It Moves Toward Support?
Roblox Corp. (NYSE:RBLX) shares traded lower Wednesday after its May metrics showed that active daily users declined month-over-month. The company announced that daily active users are at 43 million, which is up 28% from the same period a year ago but down 1% from the prior month. Roblox Corp. was down 7% at $83.48 at last check. Roblox Daily Chart Analysis  Shares were able to break out of a sideways channel and are falling back to old resistance, looking to test the level as support  The stock is trading above the 50-day moving average (green), indicating sentiment in the stock is likely bullish. This moving average may hold as an area of support on the chart. Key Roblox Levels To Watch  The stock was able to break above resistance near the $80 mark mid-May and now looks like it is going to try to test the area as potential support. The stock is now showing a potential resistance level near the $104 mark, as this area is where the stock made all time highs. If the $80 mark doesn't hold, the stock may fall to the $64 level, as this was an area where the stock previously has been able to find support. The 50-day moving average currently sits near the $80 mark as well, potentially adding to the possibility that the stock is able to hold this level as support. Bullish technical traders would like to see the stock make higher lows and head toward the $104 resistance level. If the stock can break above the resistance level, bulls would like to see the stock retest the level as support and then possibly head higher. Bearish technical traders would like to see the stock break below the $80 mark and then below the bottom of the channel. If the stock is able to cross below the $80 support, and then the $64 mark, it may follow with a large dropoff. Photo courtesy of Roblox.