Keeping an eye on this one after a recent gap fill. After a large 43% decline over the last 3 months things may finally be shaping up for a long play on RBLX. The setup is promising with a strong intraday reversal on a bullish hammer bar on 1/10/22. Ideally I'd like to see it stabilize a bit more, form a floor around 86 and break trend higher before taking a long position. Regardless, an interesting opportunity in a promising sector. RBLX has experienced strong revenue growth over the last 3 years (despite negative net income due to high developer exchange fees), and although growth for daily active users in the US has slowed, it continues to grow outside the US, where there is a larger opportunity for expanding market share.
Comment:
Still keeping an eye on this as a potential long. Haven't taken a position yet as there was not enough stabilization after that gap fill (as previously mentioned in original post). However, we are now testing the long term support going back to inception. Bull case is price action holds on that long term support (as shown in chart above) and reverses higher. Bear case is we break below that long term support, and possibly see a retest of the previous low near $70.