Is it time to buy Roblox ($RBLX)? – August 10, 2022
RBLX
I want to look at Roblox ( NYSE: RBLX ) today, it’s kind of like Rolex only spelled differently and a different company, and probably keeps better time. But anyway, I digress.
I am looking at this stock, they reported earnings yesterday after the bell. This is what happened today, it was a little bit ugly there, in the morning, where the stock closed and then ultimately fell down almost 10 percent before it reversed. We can’t go back and trade that but this is what I will tell you, this was a big flush.
This was a big flush, it got rid of all of the uncommitted shareholders. And the stock rallied back up above the opening print and closed very, very close to the intraday highs. So this was a really, really strong closing location value. Because of that and the fact that as I see it, this trend is just starting, this trend is just getting going. That might seem weird to say when it is just up over 40 percent but this is a pretty convincing reversal here.
I think that you could still buy this stock, it’s only up 1.6 percent today. And the thing that is important to me is, the big kind of reversal that it has had today. It shows you that the sellers are done and the buyers are in. You have got about an 11 percent risk on the trade if you want to put your stop below today’s intraday low.
I would not put the stop up higher than that because you could see the stock wiggle around here a little bit. So if you say, I am going to keep a really tight stop here, you will probably get stopped out. So I would say, if you like this trade start small, have a commitment to the trade and then, just build on a winning position if it becomes a winning position.
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