Hi everyone,
Today we are tackling
ROKU
stock price downfall.
Why has it been falling so hard for the past couple of weeks?
In fact, Roku stock has been losing in price every month since July. And losing a lot.
It is now trading at 50% below July's highs. That's insane.
Roku was a major COVID theme play, as everyone expected the stock to benefit from lockdowns.
Indeed, it had grew massively and was overpriced in July-August.
Is it a hopeless stock now?
As practically all COVID-benefitting stocks in the past month,
ROKU
stock was losing in price.
After Q3 earnings report it dropped another 15% in a week. Although the report was not terrible.
My verdict : the stock is now suffering for its massive overvaluation by the public.
The Analysis.
From a technical standpoint, it is almost time for a huge reversal.
Looking at the last year's Volume Profile, we can see that 311-362 price zone saw the majority of volume traded with a POC around 317.
Now the price is far outside the Value Zone and approaching a support line.
Price surpassed important 272 level.
I expect the stock to reach 200 zone in a near future for a buy. Although, it is a conservative lower risk play.
Stock already poses a pretty tempting buy opportunity.
In the long run, I expect the price to test orange resistence line above.
AND if we break it, honorable return to high-volume zone of 310 and above is due.
As always, trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise
Today we are tackling
ROKU
stock price downfall. Why has it been falling so hard for the past couple of weeks?
In fact, Roku stock has been losing in price every month since July. And losing a lot.
It is now trading at 50% below July's highs. That's insane.
Roku was a major COVID theme play, as everyone expected the stock to benefit from lockdowns.
Indeed, it had grew massively and was overpriced in July-August.
Is it a hopeless stock now?
As practically all COVID-benefitting stocks in the past month,
ROKU
stock was losing in price. After Q3 earnings report it dropped another 15% in a week. Although the report was not terrible.
My verdict : the stock is now suffering for its massive overvaluation by the public.
The Analysis.
From a technical standpoint, it is almost time for a huge reversal.
Looking at the last year's Volume Profile, we can see that 311-362 price zone saw the majority of volume traded with a POC around 317.
Now the price is far outside the Value Zone and approaching a support line.
Price surpassed important 272 level.
I expect the stock to reach 200 zone in a near future for a buy. Although, it is a conservative lower risk play.
Stock already poses a pretty tempting buy opportunity.
In the long run, I expect the price to test orange resistence line above.
AND if we break it, honorable return to high-volume zone of 310 and above is due.
As always, trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise
