Roblox Drops 3.38% Amid Bearish Signals As Key $132 Support Tested

Roblox (RBLX) declined 3.38% in the most recent trading session, closing at $132.22 with a trading range between $132.20 and $137.84. This movement occurred alongside moderate trading volume of 5.17 million shares.
Candlestick Theory
Roblox displays multiple bearish signals in recent candlestick patterns. The September 23rd session formed a decisive bearish marubozu, closing near its low after rejecting the $138 resistance level. This follows a shooting star on September 22nd (high: $138.43, close: $136.84), indicating failed bullish momentum. Key support converges around $132 – tested three times in September – while resistance stiffens between $138-$140, a zone repeatedly challenged but unbroken since early August. Failure to reclaim $135 may signal further downside.
Moving Average Theory
Roblox currently trades below its 50-day moving average (~$134) but holds above the 100-day (~$127) and 200-day (~$102) averages. The 50/100-day MA pairing shows a bearish crossover, signaling near-term distribution pressure. However, the ascending 200-day MA confirms the primary uptrend remains intact. A sustained break below the 100-day MA would be concerning, but current price action suggests range-bound consolidation within the broader bullish structure.
MACD & KDJ Indicators
MACD registers a bearish crossover with the signal line below the zero axis, confirming weakening momentum. KDJ lines (K: 35, D: 42, J: 21) are approaching oversold territory but lack a bullish crossover signal. While the J-line’s dip below 20 suggests potential exhaustion, MACD’s negative histogram expansion contradicts this. Divergence emerges as KDJ hints at oversold conditions while MACD shows accelerating bearish momentum – warranting caution against premature reversal assumptions.
Bollinger Bands
Volatility contraction is evident with bandwidth narrowing to 6.8% (from 11% in August), suggesting impending directional resolution. Price hugs the lower band, typically indicating oversold conditions, but the absence of a bullish reversal candle diminishes this signal’s reliability. A close above the 20-day middle band ($135.20) would suggest stabilization, while sustained lower-band deviation risks a breakdown toward $128 support.
Volume-Price Relationship
Distribution patterns dominate recent volume activity. The September 19th sell-off occurred on 16.7 million shares – the year’s highest volume – affirming institutional distribution. Down days consistently show higher volume than up days (e.g., September 23rd’s 5.17M vs. September 22nd’s 6.62M on gains), confirming bearish conviction. Until volume expands on rallies, the path of least resistance remains downward.
Relative Strength Index (RSI)
The 14-day RSI reads 41, hovering near neutral territory after retreating from overbought levels. While not yet signaling oversold conditions, its divergence from price is noteworthy – July’s high at $137.79 correlated with RSI 72, whereas the September 22nd high of $138.43 registered only RSI 58. This bearish divergence suggests fading upward momentum despite nominal price highs. Traders should monitor the $132 support breach that could trigger RSI descent toward 30.
Fibonacci Retracement
Applying Fibonacci to the August 26th low ($124.76) and September 22nd high ($138.43) shows critical retracement levels. The 50% level at $131.60 aligned precisely with September 23rd’s low of $132.20. A breakdown here targets the 61.8% retracement at $129.98. Confluence exists between the 61.8% Fib and the ascending 100-day MA, creating a high-probability reversal zone if tested. Bulls must reclaim the 38.2% level ($133.21) to invalidate the bearish structure.
Confluence and Divergence Observations
Confluence appears at the $132 support, combining the 50% Fibonacci level, horizontal price support, and Bollinger lower band. However, bearish divergences dominate technical signals: RSI and volume both reflect weakening momentum relative to price highs, while MACD acceleration downward contradicts KDJ’s oversold hints. The moving average configuration shows short-term deterioration despite the intact long-term trend. Resolution is likely to come from either a breakdown to test $129-$130 confluence support or a volume-supported recovery above $135.