Roblox Corp. (NYSE:RBLX) shares are trading lower Wednesday morning after the social gaming company announced worse-than-expected earnings results.
Roblox reported a quarterly earnings loss of 25 cents per share, coming in below the estimate for a loss of 14 cents per share. The company reported quarterly revenue of $568.8 million, which was up 82% from the fourth quarter of 2020.
Roblox was down 24.56% at $55.15 at the time of publication.
Related Link: How To Trade Roblox Earnings: Charting The Path Ahead
Roblox Daily Chart Analysis
- The stock saw worse-than-expected earnings and was unable to hold above the $70 level. Earnings followed with a strong gap lower Wednesday morning. This level may hold as an area of resistance in the future. Beyond this level, the stock may see strong resistance near the $95 level.
- RBLX trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates the stock has been trading with bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) shot lower Wednesday and now sits at 35. This has pushed the RSI close to the oversold region and indicates that the stock is seeing many more sellers than buyers currently. If the RSI can recover the middle line, the price may start moving higher once again.
What’s Next For Roblox?
Roblox saw a strong gap down following earnings, and now sits below the $70 level once again. The stock will likely see resistance near this level in the future, as it was unable to cross above and hold.
Bullish traders are looking to see the stock form higher lows once again and attempt to cross above the level.
Bearish traders are looking to see the stock continue to hold below the level and see another strong bearish move.
Photo: Courtesy of Alpha on Flickr
