Roblox Stock Extends Rally With 7.6% Weekly Gain Amid Bullish Technicals

Roblox (RBLX) closed at $91.07 on June 4, 2025, rising 1.25% for its fifth consecutive gain and bringing the weekly advance to 7.60%. This analysis employs multiple technical indicators to assess the stock's current position and potential future movements.
Candlestick Theory
The five-day ascending sequence reveals consistent buying pressure, with the June 2nd candle showing a robust 3.41% surge from $87.18 to $89.95 on elevated volume—a bullish confirmation signal. Recent price action establishes $91.68 as immediate resistance, tested twice in June. Support emerges at $88.75 (June 3rd low) and $84.58 (May 28th trough), where repeated bounces occurred during May's consolidation phase. The absence of reversal patterns like dojis or shooting stars near resistance suggests persistent upside momentum, though overextension risks increase after the steep rally.
Moving Average Theory
Roblox maintains a bullish alignment across key moving averages, with the 50-day ($80.40), 100-day ($66.92), and 200-day ($59.22) all sloping upward. The current price trades notably above all three averages, confirming the primary uptrend. Importantly, the 50-day crossed above both the 100-day and 200-day averages in early April—a golden cross signaling strong intermediate-term momentum. The steadily ascending 50-day average ($80.40 → $83.20 over 20 sessions) underscores accelerating bullish sentiment, providing dynamic support on pullbacks.
MACD & KDJ Indicators
The MACD (0.94) remains above its signal line (0.78) with both trending upward, confirming bullish momentum. A minor negative divergence emerged on June 4th as price reached new highs while the MACD histogram marginally contracted, suggesting potential short-term exhaustion. Meanwhile, the KDJ oscillator shows %K at 85 and %D at 82—both in overbought territory above 80. While this indicates strong upward thrust, the convergence at elevated levels raises caution about near-term pullback risks, especially given the vertical five-day ascent without consolidation.
Bollinger Bands
Volatility expansion is evident as price challenges the upper Bollinger Band ($90.50), which has widened from $88.60 over three sessions. This reflects increasing momentum and breakout confirmation after May’s band contraction (which saw width shrink 15%). Sustained closes above the upper band, while indicative of strength, historically precede minor mean-reversion moves toward the 20-day moving average midline ($86.75). The current position signals short-term overextension, particularly with the Relative Strength Index (RSI) alignment.
Volume-Price Relationship
Volume patterns validate the breakout, with June 2nd’s 3.41% surge occurring on 10.06 million shares—40% above the 30-day average—demonstrating conviction. However, the subsequent two sessions saw diminishing volume (5.87M and 6.57M shares) as prices advanced, creating a divergence that questions sustainability. The five-day volume profile overall remains 12% above average, supporting the rally, but narrowing volume intensity near highs may necessitate consolidation.
Relative Strength Index (RSI)
The 14-day RSI reads 76.3, solidly above the overbought threshold of 70. Historically, such levels have preceded 5-8% pullbacks within two weeks (observed in February and April). While the uptrend remains intact, RSI’s overbought status combined with MACD divergence increases the probability of consolidation. Traders should monitor for bearish RSI reversals below 70 as potential exit signals, but note that strong trends can sustain overbought readings longer than anticipated.
Fibonacci Retracement
Applying Fibonacci to the recent swing low ($84.58 on May 28th) and high ($91.68), key retracement levels include the 23.6% level at $90.00 and 38.2% at $88.97—confluent with nearby psychological price barriers. Longer-term Fib levels drawn from the 2024 low ($34.41) show potential support at $78.35 (23.6%) and $70.10 (38.2%) should a deeper correction occur. Currently, the cluster near $90.00–$91.68 represents significant resistance requiring substantial volume to overcome, while the $88.75–$89.00 zone offers first support, aligning with the 23.6% Fib and prior swing highs.
Confluence exists at $88.75–$89.00 (price support from June 3rd low, 23.6% Fibonacci, and Bollinger midline convergence), making it a critical defensive zone for bulls. However, divergences between weakening volume, overbought RSI/KDJ readings, and MACD histogram contraction collectively hint at near-term exhaustion. While the primary uptrend remains intact, these signals suggest a probabilistic 5-7% pullback toward $88.97–$86.75 before renewed bullish attempts.