Roblox Stock Drops 1.65% As Technical Indicators Signal Bearish Pressure

Roblox (RBLX) declined 1.65% to $122.70 in the latest session, marking two consecutive down days totaling a 1.69% pullback. This analysis evaluates key technical indicators to assess the stock's trajectory.
Candlestick Theory
Recent candlesticks show a volatile pattern, with a prominent bullish candle on August 25th (+6.20%) followed by two bearish candles. The August 27th candle closed near its low ($122.70 vs. $121.28 low), indicating persistent selling pressure. Key support resides at $121.28 (August 27th low) and $118.00, while resistance converges near $125.06–$127.55 (recent highs). A break below $121.28 could trigger further downside toward $115.00.
Moving Average Theory
The 50-day moving average (approximately $125) recently turned resistance after acting as support. The 100-day MA (near $115) and 200-day MA (around $95) remain ascending, confirming the longer-term uptrend. However, the price trading below the 50-day MA suggests short-term bearish pressure. The 50/100/200-day alignment maintains a bullish sequence, but deterioration would require monitoring if the 100-day MA is tested.
MACD & KDJ Indicators
MACD exhibits a bearish crossover, with the histogram in negative territory since early August, aligning with the pullback from July’s peak. KDJ readings show the %K line hooking below the %D line after approaching overbought territory (>80) on August 25th, signaling fading upward momentum. While not oversold (KDJ >40), this divergence reinforces near-term caution.
Bollinger Bands
Volatility expanded during July’s decline but has contracted recently, with the 20-day Bollinger Bands narrowing. Price hovers near the lower band ($121), suggesting potential short-term support. A sustained break below could accelerate selling, while a reversal toward the midline ($130) may indicate consolidation. Band contraction typically precedes significant directional moves.
Volume-Price Relationship
Volume surged 104% on August 25th’s rally, validating bullish momentum. However, the subsequent down days saw elevated volume (notably +103% on August 26th), confirming distribution. The latest session’s lower volume (-51% vs. prior day) hints at waning selling pressure, though insufficient to signal reversal without bullish confirmation.
Relative Strength Index (RSI)
The 14-day RSI reads 39.4, down from 55 two weeks ago, reflecting weakening momentum. While not yet oversold (<30), the decline below neutral (50) may suggest further downside potential. This reading diverges from the August 25th price spike, warning that recovery attempts lack robust internal strength.
Fibonacci Retracement
Applying Fib levels to the $40.51 (October 2024 low)-$150.59 (July 2025 high) rally, the 23.6% retracement ($124.61) aligns with recent resistance. The price rejected this level twice in late August, reinforcing its technical significance. Confluent support emerges near the 38.2% level ($108.54), closely overlapping with the 100-day MA, making it a critical juncture if bears breach $118.00.
Conclusion
Technical indicators for Roblox reflect near-term bearish pressure but within a broader uptrend. Confluence exists at $124.61 resistance (23.6% Fib and 50-day MA) and $118.00 support (volume-based and psychological level). Bearish momentum signals from MACD, KDJ, and RSI divergence suggest caution, though the ascending 100/200-day MAs and Bollinger Band support near $121 may mitigate downside. A decisive break below $121.28 could expose $118.00, while reclaiming $125.06 may invalidate the bearish setup. Volume confirmation remains critical for sustainable moves.