Roblox Stock Rises 2.32% Amid Key Support Battle As Indicators Signal Potential Reversal

Candlestick Theory
Roblox (RBLX) closed at $117.52, gaining 2.32%. Recent candlestick patterns suggest indecision near key support. The August 15th session formed a long-legged doji after a steep decline, signaling potential exhaustion near $112 support. Subsequent candles show consolidation between $114–$120, reflecting buyer-seller equilibrium. A bullish engulfing pattern on August 18th (open: $112.12, close: $119.95) confirmed short-term demand, though rejection near $121 highlights resistance. Critical support lies at $112 (tested twice), while $120–$121 acts as immediate resistance.
Moving Average Theory
The 50-day MA (~$120) crossed below the 100-day MA (~$125) in early August, confirming a bearish near-term trend. Current price ($117.52) trades below both short-term averages, signaling sustained downward pressure. The 200-day MA (~$71) remains rising, indicating the long-term uptrend is intact. However, the widening gap between the 50/100-day MAs and price suggests bearish momentum may persist until reconvergence occurs.
MACD & KDJ Indicators
MACD shows a bearish crossover in late July, with the histogram remaining negative but flattening near the zero line. This hints at weakening downward momentum. KDJ oscillators are recovering from oversold territory (K: 35, D: 30, J: 45), with the %K line crossing above %D on August 22nd, suggesting nascent bullish momentum. Divergence is noted—while price made lower lows in mid-August, KDJ formed higher lows, indicating potential reversal energy.
Bollinger Bands
Bands contracted sharply during August’s consolidation (width narrowed ~25%), reflecting plummeting volatility. Price currently trades near the middle band ($118), lacking directional conviction. A close above the upper band ($124) or below the lower band ($112) would signal volatility expansion and possible trend resumption. The prolonged squeeze heightens breakout probability.
Volume-Price Relationship
Volume spikes accompanied key moves: the July 31st peak ($150.59) saw record volume (24.7M shares), confirming distribution. August’s decline featured expanding volume, validating bearish momentum. Recent rallies (e.g., August 18th +2.22% on 14.6M shares) lacked commensurate volume, undermining sustainability. The latest 2.32% gain occurred on below-average volume (7.6M vs. 10M avg), suggesting cautious participation.
Relative Strength Index (RSI)
RSI (14-period) is 42, rising from oversold extremes (<30 in early August) but remaining neutral. The recovery from oversold aligns with price stabilization but lacks strength for overbought (>70) confirmation. Caveat: RSI’s mid-zone readings in trending markets offer limited guidance, and August’s oversold bounce proved transient.
Fibonacci Retracement
Applying Fib levels to the rally from the May 2025 low ($39.86) to the July 31 peak ($150.59):
- 38.2% retracement: $105.50 (briefly breached on August 18th)
- 50% retracement: $95.20 (major support)
- Confluence: Current consolidation aligns with the 38.2% level, while the 50% zone coincides with the 200-day MA and volume-supported base from May-June.
Confluence & Divergence
Confluence: Multiple indicators signal $112–$105 as critical support (August lows, Fib 38.2%, Bollinger lower band). A breakdown here may target $95. Resistance at $120–$121 (recent highs, 50-day MA) requires high-volume clearance for reversal confirmation.
Divergence: While MACD/KDJ show improving momentum, weak volume on rebounds and the absence of key MA reconquests suggest skepticism. RSI divergence on the July–August decline (higher lows vs. lower price lows) foreshadowed the recent bounce but remains unconfirmed by trend strength.
Roblox’s technical posture implies consolidation within a broader correction. Traders should monitor $120 resistance for bullish confirmation or $112 breakdown for renewed bearish momentum, with volume as a key validator.