Roblox Rallies Following Q1 Earnings: Technical Levels To Watch

Roblox Corp. (NYSE: RBLX) shares jumped higher Tuesday. The stock is likely moving after the company reported first-quarter earnings Monday.

Revenue increased 140% year-over-year to $387 million. Daily active users also increased by 79% year-over-year.

Roblox gained 21.02% Tuesday, closing at $77.73.

Roblox 15-Minute Chart Analysis

• Roblox shares look to be stuck in a channel and need to break support or resistance to see the next leg.
• The stock is trading above both the 50-day moving average (green), and below the 200-day moving average (blue), indicating sentiment in the stock has been bullish.
• These moving averages may hold as support on this time frame.

Key Roblox Levels To Watch

• The stock is trading within a channel and may need to see a break out of the channel before it sees a stronger push.
• The $64 area is a price level that has been able to hold as support previously and may hold as support again.
• The $80 level is a place the stock struggled to cross above. This area may hold as resistance again.

What’s Next For Roblox?

Bullish technical traders would like to see the stock build some higher lows toward the $80 resistance. A break above this level with consolidation could let the stock see higher moves.

Bearish technical traders would like to see the stock fall down towards the $64 support. If the stock were to break below the $64 support and consolidate, it may see a further downwards push.