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Bitcoin's damaged technicals, getting bullish on Roblox

Irusha Peiris, O'Neil Global Advisors Portfolio Manager, joins Yahoo Finance's Jared Blikre to talk about what's moving markets, Bitcoin's damaged technicals and outlook for Roblox.

Video Transcript

ZACK GUZMAN: Well, it has been a wild week in the crypto markets as Bitcoin is down once again today, but still battling back from the lows that we saw earlier this week. So let's get technical. Yahoo Finance's Jared Blikre joins us now to break down all the moves with a very special guest. Jared.

JARED BIKRE: That's right. We have Irusha Peiris here from O'Neil Global Advisors. And Irusha, we're going to begin with Bitcoin. That is the story of the week here. I got a one-year chart up. What are you seeing in the technicals right now?

IRUSHA PEIRIS: Well, last time I was on, I mentioned that Bitcoin went on an amazing run, and it was entitled for a rest. Well, Jared, the rest is here. And so you want to be patient. And you want to realize the probabilities are not in your favor for an uptrend. Bitcoin needs some time off. There was a lot of technical damage done this week and last week. And so, it's going to take some time. I don't know how much time it's going to be.

Now, earlier this week, it could have had a bottom. But a lot of times, when it bottoms, we don't run in and buy it immediately. We like to let it settle down, let the volatility decrease, and let Bitcoin build the trading range that you can actually buy out of and manage your risk. So, we're not going to try to catch the falling knife at this point. Sometimes these things go down a lot further than you can imagine.

JARED BIKRE: Yeah, I've been there. I think every trader has caught that falling knife maybe accidentally at least one or two times. Great analysis there. I want to move on to an IPO, a recent IPO, Roblox. They just listed this year. And what are you seeing in the technicals there? Because it looks like they just kind of broke to the upside a few trading sessions ago.

IRUSHA PEIRIS: Yeah, I own shares of Roblox, this new IPO. I really like the story of it. Today, it had this really strong move. And so, on technically, it broke through a resistance area of 78. And what I was hoping for is when it broke, it was going to be a powerful move. And that's what we are seeing today. I hit a high over 84 today. So it's too late to buy in right now. It's extended. But add it to your watchlist. Let it settle down. It's going to give you another chance. I mean, this is a really, really interesting story right here.

Kids are using this left and right. It's a great community. And they have these Robuz where kids are using them, getting allowance paid in Robux so they can buy stuff and use in the community, the Roblox community. So this is one to keep an eye on. But since it's a newer stock, it's going to be a lot more volatile. So you want to make sure you are managing your risk. And that's why I'm saying, don't buy it right now. It's too extended. But watch it closely over the next month. It'll probably set up again.

JARED BIKRE: Yeah, and we have one of your old colleagues, Kathy O'Donnell, on regularly. She literally wrote the book on IPOs. And--

IRUSHA PEIRIS: That's right.

JARED BIKRE: --she does say, you got to wait a little bit. Let things set up. So just a little patience with these IPOs. All right, I want to move on to Nvidia. I know this is another stock on your radar. Chip stocks have been mostly going sideways for a few months. Nvidia is looking pretty decent here. But you can see on your screen over-- this is year to date, so over the last five months or so, pretty much sideways choppy action.

IRUSHA PEIRIS: Yeah, they announced that 4 to 1 stock split today. And so I don't buy because of a stock split, but I'm always keeping an eye on Nvidia, just because of the larger fundamental story here. They're involved in so many things-- self-driving cars, machine learning, data centers. Now technically, you have the data on the chart, but if you go even a little bit further back-- and you can kind of see it on the left hand side-- it had a really strong prior uptrend.

And so it-- kind of like Bitcoin, it was entitled to take a little bit of a rest. It's built a nice consolidation for the last five, six months. It tried to break out of a [INAUDIBLE] pattern a month ago. I tried it there, and then I backed away because it started to fail. But the good news is it's found support on the 200-day. It's gotten back above the 50-day. And maybe-- it has earnings in five days. So maybe that's the catalyst that gets it moving again. So I'm not buying it today. It's on my watchlist. I want to see the reaction to earnings. But if it has a nice reaction to earnings, maybe this and a number of the other semiconductor stocks can start moving up again.

JARED BIKRE: Yeah, that would be nice to see. And by the way, first time I interviewed Kathy Wood, she was preaching the Nvidia story. That was years ago. All right, Irusha Peiris, thank you for joining us, O'Neil Global Fund Manager Strategies. We're going to see you again real soon. Sending it back to you guys.