RBLX, 14 Jan. Support at the End of the Tunnel.
RBLX approaches an area of geometric confluence which indicates a potential support. Roblox has seen some insider selling, but also secured new funding and established web3 & metaverse partnerships in January.
Geometry:
The green support/resistance diagonals cross at $75.
Elliott:
We can count a completing ABC correction. The 78.6 fib retracement is around $73.
Oscillators:
The Stochastic is oversold since mid-December and due to move back up. The RSI is about to enter the oversold area.
Volume:
Declining volume signals a potential exhaustion of sellers.
How to trade it:
The idea is to try a long position in the area between the 78.6 retracement and the green trend line. If price continues to decline, a double bottom at $70 would be the next possibility for an aggressive entry. Indices, especially mega caps, must stabilize for a bullish environment for this idea to work.
Geometry:
The green support/resistance diagonals cross at $75.
Elliott:
We can count a completing ABC correction. The 78.6 fib retracement is around $73.
Oscillators:
The Stochastic is oversold since mid-December and due to move back up. The RSI is about to enter the oversold area.
Volume:
Declining volume signals a potential exhaustion of sellers.
How to trade it:
The idea is to try a long position in the area between the 78.6 retracement and the green trend line. If price continues to decline, a double bottom at $70 would be the next possibility for an aggressive entry. Indices, especially mega caps, must stabilize for a bullish environment for this idea to work.