Here’s your trade on $RBLX – November 8, 2023
This is Dan Fitzpatrick at StockMarketMentor.com. I want to get to Roblox ( NYSE: RBLX ) in a second, but first, let’s just look at the Nasdaq ( INDEXNASDAQ: NDX ).
It looks a little tired in this oscillation of up and down. In other words, doesn’t it kind of look like maybe the next move is going to be a little pullback? It has kind of looked that way for a while, it is like every single day. But at some point, we are going to get a little pullback. I seriously doubt you are going to see this level again.
I very much doubt that 1,400.00 is going to be tested within the next couple of months. I think there should be, there may be, there probably will be, some kind of a mild pullback that will actually be giving people who are underinvested, from a trading standpoint, it will be giving them a chance to load up on stocks.
So I am looking at this as, which way is the tide going? And so far, the tide is going upward, but I think soon enough we are going to get a little bit of a rest. So that leads me to Roblox ( NYSE: RBLX ).
When you’ve got a stock that goes up as high as this is, you really do want to sell into that strength. It would have been good to do that today right at to open. Typically, we are looking at a 30-minute bar chart but I can go down to 15, we’ll get the same type of thing. The stock opens up here and then it does what it does here.
Let’s say you are holding this stock still and you think, Oh man, I think it’s got more. Okay fine, but when it comes back down to eclipsed, to fall below the open, which is 40.24, if you are the “Last of the Mohicans” you are going to say, “Okay, I have got to sell now, this has been a round trip, so I am going to sell now before I give back more of my profit.”
Now, if you held on you are still okay, you are also down about 3 percent from where you would have been if you had just sold the stock. So this is one way for you to make sure that you are not hanging on to a stock that has gone up, that has gone in your favor. It is one way to make sure you are not hanging onto a stock for too long.
Right now the market is not really rewarding breakouts. Breakouts are rewarded during the early stages of a bull market. And at some point, they may start being rewarded again. But what is being rewarded on these breakouts is selling into them.
The buys that are really being rewarded are when you are looking at uptrending stocks and you are buying them on pullbacks. Pullbacks that find a little support, that is when you can buy them and have a tight stop so you are playing things a little close to the vest on that.
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