Roblox Stock Price jumped 7%, Trend reversal in RBLX stock?

• Roblox Stock Price jumped 7% in a single day after quarterly results.
• RBLX stock showed signs of a bullish trend reversal but confirmation awaited.
• Roblox Corp (NYSE: RBLX) disappoints in EPS estimates. 

Roblox Stock price jumped 7% approx in a single day after the release of quarterly earnings. It took a U-turn from the $33.00 support and showed signs of the bullish trend reversal. However, the confirmation of trend reversal will come when buyers succeed to push the price above the $44.00 hurdle. 

RBLX Stock price is attempting to climb above the 50 and 200 day EMA to turn the positional trend in the upward direction. Roblox Corp (NYSE: RBLX) released the quarterly earnings on May 10, 2023. It reported an EPS of -$0.44 vs estimate is -$0.349 and reported a revenue of $773.819 Million vs estimate is $767.702 Million. 

Company disappointed the investors and missed the EPS estimated by 26.21%. However, it met the revenue estimate by 0.80% which positively impacted the stock prices. 

Roblox Stock Price closed the previous session at $38.87 with an intraday rise of 7.41%. The market capitalization stands at $23.73 Billion. At the beginning of April, RBLX stock displayed a golden EMA crossover and attempted to break the $48.00 hurdle. Sadly, it gets rejected and prices gap down 12% on a single day. It triggered the negative sentiment and prices began to decline by forming lower lows. 

Roblox Stock: Are the bulls back?

Roblox Stock Price downfall halted near to $33.00 and formed a bullish hammer candle. Moreover, due to quarterly earnings RBLX stock price gained positive momentum and tested the EMA. If the buyers succeed to push the price above both the EMA then more upward momentum is possible. 

Moreover, the price might begin the rally to reach $47.00. The next phase of up move will begin when RBLX stock price will break out of $52.00. Till then the prices are expected to remain in consolidation. 

On the other hand, if the RBLX stock rejects the EMA then prices will again reverse downward. The technical analysis suggests, Roblox stock price is in bulls grip and rally may continue for a short period of time.

RBLX Stock turning bullish on multiple time frame

RBLX stock formed a bullish candle on a weekly time frame and succeeded to break the previous week high. It shows that stock is turning bullish on a multiple time frame and might attract the attention of long term investors. 

The technical indicator like MACD curve is reversing upward and on the way to generate a positive crossover. It indicates buyers are active at lower levels and returning back to the track. The RSI at 50 sloping upward denotes the strength of the bulls and more room for upside is open. 

Conclusion

Roblox Stock Price jumped 7% approx in a single day after the release of quarterly earnings. It attempted to break the EMAs and showed initial signs of bullish trend reversal. The technical analysis suggests RBLX stock is in bulls grip and upward momentum might continue for some more time.

Technical levels

Resistance levels : $33.00 and $25.00

Support levels : $47.00 and $52.00

Disclaimer

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