Watching for Pinch & Pop on $RBLX – June 15, 2023
This is Scott with your Chart of the Day. I want to take a quick look at Roblox ( NYSE: RBLX ).
Now, I don’t know if you have young kids but my kids love Roblox ( NYSE: RBLX ), I’m pretty sure they play it every single day. But it has been lagging behind the rest of the market.
We see SPY ( NYSEARCA: SPY ) really stretching here, but Roblox ( NYSE: RBLX ) is kind of in this tight consolidation pattern right around a bed of moving averages. Now, I love when stocks hover around their moving averages because typically that can act like a bit of a floor.
As you can see I have drawn these trendlines here, a downward-sloping trendline with lower highs. And an upward-sloping trendline with higher lows. And Dan Fitzpatrick at StockMarketMentor.com calls this a pinch & pop pattern.
So we want to see if this can pop out of where it’s pinching between these two trendlines. And so that is what we are looking at here on Roblox ( NYSE: RBLX ). I see some pretty clear support around these moving averages.
Now, we just want to see this stock move higher out of this consolidation range and catch up to the rest of the market, which is screaming pretty loudly right now
This is one stock that I have on my watch list and we are trading over at StockMarketMentor.com. I think it is worth watching because even if it doesn’t break out, ideally, this can hover around these moving averages and give you a nice level of support right around that $40.00 zone.
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