Roblox Corp - Class A (NYSE:RBLX): A Minervini Trend Template Candidate

Roblox Corp - Class A (NYSE:RBLX) is an online gaming platform that has gained significant traction in recent years. The company operates a user-generated content platform where players can create and share immersive 3D experiences. For traders following Mark Minervini’s trend-following strategy, RBLX presents an interesting case due to its strong technical setup and momentum characteristics.

Why Minervini’s Trend Template Matters

Mark Minervini’s Trend Template is a systematic approach to identifying stocks in strong uptrends. The strategy focuses on price action, moving averages, and relative strength to ensure stocks meet high-performance standards. Stocks that fit this template are typically in Stage 2—an accumulation phase—where institutional buying drives sustained upward momentum.

How RBLX Fits the Minervini Trend Template

Strong Technical Rating

According to the ChartMill Technical Report, RBLX scores a perfect 10 in technical rating. This indicates robust performance across short and long-term timeframes. Key highlights include:

• Price Above Key Moving Averages: RBLX trades above its 50-day ($59.72), 150-day ($56.54), and 200-day ($52.87) moving averages, confirming a bullish trend.
• Upward-Sloping Moving Averages: The 200-day MA has been trending upward for at least a month, reinforcing long-term strength.
• Relative Strength: With a relative strength ranking of 94.61, RBLX outperforms nearly 95% of all stocks in the market.
• 52-Week Performance: The stock is currently 70.87% above its 52-week low and within 11.5% of its 52-week high ($75.74), indicating strong momentum.

Support Levels

The technical report identifies three key support zones:

1. $55.13 (weekly trendline)
2. $52.68 (daily trendline)
3. $50.25 (weekly trendline)

These levels provide potential downside protection if the stock experiences a pullback.

Fundamental Growth Metrics

While Minervini’s strategy primarily focuses on technicals, fundamental acceleration can enhance a stock’s potential. RBLX shows:

• Revenue Growth (TTM): +28.68%
• Quarterly Revenue Growth (Q2Q): +20.84%
• EPS Growth (Q2Q): +36.54%

Free cash flow has also surged, with FCF growth of 417.12% over the past year.

Current Setup Considerations

Despite its strong technical rating, the setup score for RBLX is 3, indicating that the stock may not be in an ideal consolidation phase for a new entry. The recent price movement has been volatile, suggesting traders may want to wait for a tighter trading range before initiating a position.

Final Thoughts

Roblox Corp (NYSE:RBLX) aligns well with Minervini’s Trend Template due to its strong uptrend, high relative strength, and solid moving average structure. However, the lack of a clear consolidation pattern means traders should monitor for a better entry opportunity.

For more detailed analysis, review the full technical report here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider consulting a financial advisor before making any investment decisions.