RBLX 

I want to look at Roblox ( NYSE: RBLX ) today, it’s kind of like Rolex only spelled differently and a different company, and probably keeps better time. But anyway, I digress.

I am looking at this stock, they reported earnings yesterday after the bell. This is what happened today, it was a little bit ugly there, in the morning, where the stock closed and then ultimately fell down almost 10 percent before it reversed. We can’t go back and trade that but this is what I will tell you, this was a big flush.

This was a big flush, it got rid of all of the uncommitted shareholders. And the stock rallied back up above the opening print and closed very, very close to the intraday highs. So this was a really, really strong closing location value. Because of that and the fact that as I see it, this trend is just starting, this trend is just getting going. That might seem weird to say when it is just up over 40 percent but this is a pretty convincing reversal here.

I think that you could still buy this stock, it’s only up 1.6 percent today. And the thing that is important to me is, the big kind of reversal that it has had today. It shows you that the sellers are done and the buyers are in. You have got about an 11 percent risk on the trade if you want to put your stop below today’s intraday low.

I would not put the stop up higher than that because you could see the stock wiggle around here a little bit. So if you say, I am going to keep a really tight stop here, you will probably get stopped out. So I would say, if you like this trade start small, have a commitment to the trade and then, just build on a winning position if it becomes a winning position.

BMY 

This is Scott with your Chart of the Day. I am wondering if it is time to give BMY ( NYSE: BMY ) another try. I had been watching Bristol-Myers Squibb ( NYSE: BMY ) back here in April and May. I was looking for a big break out of this long base of consolidation.

Well, that break never happened, the stock never really gave us a chance to kind of get into it and it never really broke out. But I am wondering if it is time to revisit this stock. Because, as you can see, on Friday here, it had bounced off of a pretty key level of support that it bounced off of earlier in June.

You can see how today, which is Monday, we have this huge bullish engulfing candlestick through a bunch of key moving averages here. Now, the volume today leaves a lot to be desired. But I think that this is a pretty key support zone here for Bristol-Myers Squibb ( NYSE: BMY ).

If I draw a downward sloping trendline from the high back here, at the end of June, you can see we got a little bit of a triangle pattern and we are right underneath a clear level of resistance. And so I think it makes sense to keep an eye on Bristol-Myers Squibb ( NYSE: BMY ) and look for a strong move through that 50-day moving average coming on higher than average volume.

Now, that may be an entry but you could also look for a breakthrough and then wait for the backtest and see if the stock can base, once again, close to the 50-day moving average. So this is a stock that I will be watching, probably for the rest of the month, just to see if it can give us a chance to, eventually, break out of this really long base of consolidation.