Earlier this month, I told you that Facebook — now Meta Platforms, Inc. (FB) — CEO Mark Zuckerberg wants to own and operate the “metaverse.”
If you missed that article, you can read it right here: Why Mark Zuckerberg Wants to Own the Metaverse
And if you’re not up to speed on this topic, allow me to provide a bit of a refresher…
The metaverse is basically a virtual reality (VR) world where everything happens totally online.
I’m talking about going to school or work and even hanging out with friends…
Just strap on a VR headset, log in and you can begin interacting with the metaverse from the comfort of your own couch.
Now, not everyone is a fan of this idea, but I’m extremely bullish on the metaverse.
I expect it to be one of the hottest investment trends of the decade, and Meta Platforms isn’t the only major player in this space.
Roblox Corporation (RBLX) is the San Mateo, California-based company that operates an online platform that allows you to program and play games and explore virtual worlds.
Fundamentally, the company is positioning itself nicely to capitalize on the metaverse megatrend.
But the reason I wanted to talk about this topic again today is that, from a technical perspective, the stock is setting up in a “high tight flag” pattern.
RBLX was one of the hottest initial public offerings (IPOs) of the year.
I’ve been looking for a good place to buy it, and this might be it.
Trading a High Tight Flag
If you’re not familiar, a high tight flag is an extremely rare bullish chart pattern.
It occurs when a stock climbs 100% or more in less than eight weeks.
This could be from news, earnings or seemingly no new information at all.
Such a move will almost always be accompanied by a large increase in volume.
Once the stock tops, you want to see a pullback of no more than 20%.
This is crucial… The reason you want to see a limited pullback is that it signals that profit-taking is minimal and most buyers are holding their positions.
If the stock can stay within that 20% range for two to six weeks and then break out into new highs, that’s the buy signal.
In other words, you want to buy it as soon as the stock makes a new high.
And for RBLX, that would be a move above $141.60.
I’ll keep you posted on how the price action develops, so stay tuned.
Embrace the surge,
Editor, Stock Surge Daily