ROKU - 8.72% Potential Profit - Ascending Triangle Long

Roku, Inc.NASDAQ

Description

⋅ Aug 4, 2020 11:14 AM

Be careful - earnings tomorrow. I suggest you wait for earnings to be out to then confirm or dismiss the below theory. Once out, I would place an entry with a Limit order to confirm the breakout.

5-month uptrend with Support confirmed multiple times over the past 5 months. Ascending Triangle formed within, breaking through consolidation with an opportunity to touch a new resistance at Sep19 all-time high.

- 5-month uptrend
- RSI + Stoch well above 50
- MACD above Signal.

Suggested Entry $158.92
Suggested Stop Loss $154.41
Target price $175.43

Order cancelled

⋅ Aug 7, 2020 10:31 AM

As expected, earnings have invalidated the setup.

Dismiss this setup and look for better opportunities. Too much uncertainty at this point.

Trade closed: target reached

⋅ Aug 7, 2020 6:03 PM

When playing earnings, I prefer to be greedy on the profit-taking.

For personal reasons, I wasn't able to monitor the trade intra-day, and I ended up not taking this shot.

However, if you would have been quick enough to react to the sudden spike (before the drop) you would have reached the 8.7% profit target.

Comments

Pastig

⋅ Aug 8, 2020 11:41 PM

And what do you think about the movin on Monday and next week?

maschera

⋅ Aug 10, 2020 10:09 PM

@Pastig, the indicators tell us that there is still potential for a bounce-back that could presumably push up to the new resistance established at $162.62. However, volume has decreased in the past week and I don't clearly see buyer pressure winning over sellers.

I don't feel entering any position this week - too much uncertainty. I prefer to focus on better opportunities.