Roblox Extends Rally 2.92% As Technicals Signal Bullish Continuation

Roblox (RBLX) advanced 1.16% to close at $103.59 during the most recent session, extending gains for a second consecutive day with a cumulative 2.92% rally over this period. This occurred within a daily range of $102.32 to $104.32.
Candlestick Theory
Recent sessions reveal significant price action developments. The July 1st session established a robust support level at $100 after a 4.33% decline, marked by a long bearish candle. This was followed by a bullish engulfing pattern on July 2nd, closing above the prior candle’s midpoint with a 1.74% gain, signaling a reversal. The subsequent confirmation candle on July 3rd reinforced bullish sentiment near the $102-$103 zone. Resistance now emerges at $105.87 (June 27 high), while $100 remains a critical psychological and technical support floor.
Moving Average Theory
Roblox currently trades above all major moving averages, confirming a bullish trend structure. The 50-day MA ($95.12) crossed above the 100-day ($88.30) and 200-day ($70.15) MAs in Q1 2025, establishing a golden cross configuration. With the price at $103.59, the ascending alignment of shorter-term averages above longer-term ones suggests sustained upward momentum. A notable confluence exists near $100 – where the 20-day EMA converges with June’s swing low – creating a reinforced support zone.
MACD & KDJ Indicators
The MACD histogram has turned positive after a bullish crossover triggered on June 28th, with the MACD line (12-day EMA) accelerating above the signal line (9-day EMA). This suggests strengthening upward momentum. Concurrently, the KDJ oscillator exited oversold territory (K-line at 25 on July 1) and now shows K (63) and D (58) lines rising steeply above the 50 midline. The tandem bullish MACD crossover and KDJ hook from oversold conditions reinforce the recovery thesis, though neither yet indicates overbought extremes.
Bollinger Bands
Bollinger Bands contracted sharply between June 28 and July 1 (σ < 1.5), preceding a volatility expansion as price broke above the 20-day moving average (centerline). Current trading near the upper band ($104.80) implies near-term overextension. However, the close above the centerline ($101.20) shifts it to support. Band expansion suggests continued directional energy, though a mean-reversion pullback toward $101.50-$102 could materialize to alleviate tension.
Volume-Price Relationship
The July 2nd breakout rally recorded 9.56 million shares – the highest volume since June 9th – validating the surge. While July 3rd volume declined to 3.22 million shares, it remained above the 30-day average. Volume has consistently supported advances: higher volume accompanied the break above $100 resistance, while recent pullbacks occurred on diminishing volume. This accumulation pattern suggests institutional participation in the recovery phase.
Relative Strength Index (RSI)
The 14-day RSI reading of 58 remains in neutral territory, recovering from a low of 42 on July 1st. No bearish divergence exists as RSI climbs alongside prices. The indicator's midpoint (50) has flipped to support, aligning with the $100 price floor. While RSI hasn't breached overbought thresholds (>70), its trajectory supports upside continuation potential without immediate reversion risk.
Fibonacci Retracement
Applying Fibonacci to the rally from $50.13 (November 29 low) to $105.87 (June 27 high) shows the recent $100 low aligns precisely with the 23.6% retracement level ($101.65). The sharp rejection at this level demonstrates its technical relevance. Key retracement supports are now established at $97.45 (38.2%) and $94.26 (50%). Upward targets include the 161.8% extension at $110.20 should the recovery surpass the June peak.
Confluence and Divergence Observations
Significant confluence bolsters the $100 support level, reinforced by the 23.6% Fibonacci retracement, volume-backed candlestick reversal, and KDJ oversold bounce. The MACD bullish crossover and RSI uptick further validate momentum recovery. However, Bollinger Band proximity and RSI neutrality suggest near-term consolidation may precede further advances. No material bearish divergences were observed across oscillators during the recovery phase. The technical mosaic favors upside continuation toward $105.87 resistance, though volatility may increase near this psychological threshold.