On Jan 24 following Netflix's (NFLX) earnings beat and share surge, optimistically a broadening pattern in Roku stock which confirmed a weekly candle low following a multi-week pullback in shares was detailed and published. I went on to say owning ROKU shares as part of a collar or one of its variations for both accumulation purposes and upside participation was a deserving position for bullish investors to consider imho.
As traders reading this are well aware, there would be no sequel to NFLX's earnings nod. After a near 10% rally over three weeks, ROKU's own mixed results sent shares cratering in excess of 20%.
Today and with shares down roughly 25% from my prior discussion price and more than 30% from recent highs, ROKU has moved into a well-supported technical zone consisting of longer-term pattern and Fibonacci levels dating as far back as December 2022. Moreover, for collared traders, accumulation can be done for pennies on the dollar versus the cost for stand-alone stock traders still bullish on shares and considering DCA, i.e. dollar cost averaging.
As traders reading this are well aware, there would be no sequel to NFLX's earnings nod. After a near 10% rally over three weeks, ROKU's own mixed results sent shares cratering in excess of 20%.
Today and with shares down roughly 25% from my prior discussion price and more than 30% from recent highs, ROKU has moved into a well-supported technical zone consisting of longer-term pattern and Fibonacci levels dating as far back as December 2022. Moreover, for collared traders, accumulation can be done for pennies on the dollar versus the cost for stand-alone stock traders still bullish on shares and considering DCA, i.e. dollar cost averaging.