For his final Executive Decision segment of Wednesday's "Mad Money" show, host Jim Cramer checked in with David Baszucki, founder and CEO of Roblox Corp. (RBLX) , the online gaming platform.
Baszucki said Roblox remains the place for innovation, safety and civility among gamers. People come to Roblox to play, make connections and interact socially, but soon they'll also be able to learn and be entertained as new features get added to their platform.
When asked about gaming demand, Baszucki admitted there are difficult comparisons to the height of the pandemic, but he said the 18- to 24-year-old demographic remains strong, as do geographic areas such as Japan and India. More and more companies are joining Roblox and creating their own content, he said, which only makes their worlds richer for everyone.
Let's check and see if there is any demand for Roblox shares.
In this daily bar chart of RBLX, below, we can see that the decline since November has not been a game but a harsh reality of a bear market. Prices trade below the declining 50-day moving average line and below the slower-to-react 200-day line. The On-Balance-Volume (OBV) line shows a decline from November, telling us that sellers of RBLX have been more aggressive with heavier trading volume on days when RBLX has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish and pointed lower.
In this weekly Japanese candlestick chart of RBLX, below, we see a bearish setup. Prices are in a decline with no bottom pattern and only a few small lower shadows. The 40-week moving average line has a negative slope. The weekly OBV line has fallen hard and the MACD oscillator is bearish.
In this daily Point and Figure chart of RBLX, below, we can see that the software has projected a downside price target in the $9 area.
Bottom line strategy: With no bottom in sight, traders and investors should avoid the long side of RBLX. The path of least resistance is down for now.
