Roblox (RBLX) Has A Nice Opportunity For Long Term Trade

Roblox (RBLX) is an online game platform and game creation system developed by Roblox Corporation that allows users to program games and play games created by other users. Created by David Baszucki and Erik Cassel in 2004 and released in 2006, the platform hosts user-created games of multiple genres coded in the programming language Lua.

RBLX January 2023 Daily Chart  

RBLX January 2023 Daily Chart  

Roblox (RBLX) finished a bullish movement in December 2021. We called that peak wave (I). Then a downtrend started, which developed a Elliott Wave double correction structure ending in May 2022 at $21.59. (If you want to learn more about Elliott Wave Theory, please follow these links: Elliott Wave Education and Elliott Wave Theory).

RBLX has remained sideways from this point to current prices. The bounce took the form of a leading diagonal ending at $53.99 and again started to move lower. This high we called wave I. Another double correction was formed again. The first 3 waves ended wave ((W)) at $33.08. Then the rally failed at $47.93, so it was the connector ((X)). From there we can see 3 more waves to the downside that completed the double correction and wave ((Y)) of II and wave II at $25.38. As price stays above this last level, stock should continue higher to complete a wave ((1)). Then we should have a nice opportunity to buy in the pullback after see 3 or 7 swings lower in wave ((2)).