Roblox Corp(NYSE: RBLX) stock price is trading with bullish cues and bulls are trying to defend the 50 day EMA support. Meanwhile,the Investors and traders are keeping an eye on the Q4 earnings which is scheduled today and expecting the company to meet the street estimates.
In the previous session NYSE: RBLX stock price closed at $35.64 with an intraday gain of 3.6% and the market cap stood at $21.431 billion.
RBLX Q4 earnings will give direction to the stock?
RBLX stock price had shown a surprising recovery of approximately 60% from its yearly demand zone. The price formed a bullish reversal pattern which has attracted the attention of long term investors.
In mid January, RBLX bulls succeeded in reclaiming the price above the 50 day EMA which increased volatility and reversed the short term trend in the direction of bulls. Later, the bulls attempted to break out of the downward sloping trendline as well as the 200 day EMA hurdle. However, market sentiment turned negative and a brutal sell off was triggered from the higher levels.
The recent sell-off in RBLX price halted at the 50 day EMA and formed a bullish candle
which indicates that the buyers are expecting a bounce back from the support levels. But, if the market sentiment remains negative then the probability of bounce back will drastically decrease and the bears might try to drag prices further down. Quarter 4 earnings are scheduled for release today and if the company succeeds in beating street estimates then a wild short covering rally might be witnessed in the coming session.
Technical indicators of the RBLX stock like MACD generated negative crossover indicating mild bearishness. The RSI at 50 indicates that there is a tug of war between buyers and sellers with each side seeming equally strong.
As per Yahoo finance, RBLX Q4 average earnings estimate remains negative at $0.52 and the average revenue estimates at $881.41 million which shows that the company financials might not be up to mark and it could create trouble for long term investors.
Summary
Roblox Corp(NYSE: RBLX) stock price is going down while rejecting the 200 day EMA but the prices are near the support levels and might trigger a short-term relief rally after the release of Q4 earnings. However,If the prices drop below $31.00, then it could mean trouble for bullish traders.
Technical levels
Resistance levels : $40.00 and $48.00
Support levels : $31.00 and $25.00
