Roblox Corp. (RBLX) - Is the shoulder showing the arm?
The title under analysis is showing a newfound strength that will allow it to reverse the long-term bearish trend. An accumulation phase has indeed been created, dictated by the sideways movement that has given rise to an "inverse head and shoulders" or triple bottom pattern. This is further confirmed by the decreasing volumes on the selling side, which are divergent from the price.
By using Elliott Wave Theory, it has been possible to identify both the final phase of the ABC correction and the beginning of a new impulse wave 12345.
The entry signal in this case will be the weekly closing above the neckline. The target points will be as follows:
TP: $65 with a profit range between 46 - 50%. Once $60 is reached, it would be advisable to operate with a trailing take profit to exploit potential higher price levels;
SL: $34, the midpoint of the pattern.
By using Elliott Wave Theory, it has been possible to identify both the final phase of the ABC correction and the beginning of a new impulse wave 12345.
The entry signal in this case will be the weekly closing above the neckline. The target points will be as follows:
TP: $65 with a profit range between 46 - 50%. Once $60 is reached, it would be advisable to operate with a trailing take profit to exploit potential higher price levels;
SL: $34, the midpoint of the pattern.