$ROKU Moving Down (Bearish) Inside It's Bullish Channel
This is usually what happens when certain buy side media outlets (cnbc) get euphorically drunk on a stock, it goes down!
Market makers and hedge funds love these moments of stupid exuberance, it creates a nice vacuum to sell at the (temporary) highs to weak hands as they know those same weak hands will undoubtably capitulate on (shakeouts) drops. What's better than taking shares from weak hands at a low?
Technically this is setting up for a drop to the rising support line. I'll be averaging in buys at that point. If it drops out of the channel, look for a the next support at $119, which is the 38.2% fib level.
Market makers and hedge funds love these moments of stupid exuberance, it creates a nice vacuum to sell at the (temporary) highs to weak hands as they know those same weak hands will undoubtably capitulate on (shakeouts) drops. What's better than taking shares from weak hands at a low?
Technically this is setting up for a drop to the rising support line. I'll be averaging in buys at that point. If it drops out of the channel, look for a the next support at $119, which is the 38.2% fib level.
Comment:
See the reactive vibration the channels trendline gave off? If it holds it can be ATHs, but if it fails then 119.00 is the expected next level down. I avaraged in some 137.20 buys here, with put protection. Willing to buy more if hits 119 as well. Roku will be THE go-to pipe for streaming.