ROBLOX CORP -CLASS A is setting up nicely for a breakout.

Our stock screener has identified ROBLOX CORP -CLASS A (NYSE:RBLX) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:RBLX.

Zooming in on the technicals.

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall RBLX gets a technical rating of 8 out of 10. Although RBLX is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• RBLX is one of the better performing stocks in the Entertainment industry, it outperforms 73% of 73 stocks in the same industry.
• RBLX is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so RBLX is lagging the market slightly.
• In the last month RBLX has a been trading in the 37.35 - 42.04 range, which is quite wide. It is currently trading near the high of this range.
• When comparing the performance of all stocks over the past year, RBLX turns out to be only a medium performer in the overall market: it outperformed 60% of all stocks.

Our latest full technical report of RBLX contains the most current technical analsysis.

Why is NYSE:RBLX a setup?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:RBLX currently has a 10 as setup rating:

RBLX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 40.65, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for RBLX in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:RBLX?

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.