$ROKU has had an incredible run, with 11 straight weeks of nonstop gains. The weekly chart is showing a slowdown in growth, with $ROKU having trouble around the $70 to $75 print level. Zooming out and looking at the trading history for the stock, we can see that in the December crash $ROKU printed a lower low. This is an indicator that $ROKU will not make it to breaking its $77.76 high, which will catch many momentum longs by surprise.
Looking at Fibonacci time frame analysis, we can see that an inflection point is coming toward the last two weeks of this month, perhaps coinciding with a sell off on the earnings date of
The red circles showcase the lower lows and the expected lower high. The gray lines over volume show a decreasing volume formation and complacency in the stock. The green and red curved lines showcase the momentum of the stock moving from a left open crescent to a right open crescent, indicating that a topping pattern is developing. The purple circle showcases the stock beginning to put in longer lower wicks than upper wicks, indicating selling pressure is increasing.
Longs would be wise to start protecting their shares by trimming positions or putting a stop loss plan into place if one doesn't have one already. Shorts should be watching closely for further breakdown indications and initiate a small position with a tight stop just above the yearly high, with a plan to add to the position as it becomes profitable.
This analysis will catch many $ROKU longs by surprise who are preparing for further upside in the stock, but the volatile pattern and print of a lower low should caution any longs as to the downside risks from these elevated price levels.
Looking at Fibonacci time frame analysis, we can see that an inflection point is coming toward the last two weeks of this month, perhaps coinciding with a sell off on the earnings date of
The red circles showcase the lower lows and the expected lower high. The gray lines over volume show a decreasing volume formation and complacency in the stock. The green and red curved lines showcase the momentum of the stock moving from a left open crescent to a right open crescent, indicating that a topping pattern is developing. The purple circle showcases the stock beginning to put in longer lower wicks than upper wicks, indicating selling pressure is increasing.
Longs would be wise to start protecting their shares by trimming positions or putting a stop loss plan into place if one doesn't have one already. Shorts should be watching closely for further breakdown indications and initiate a small position with a tight stop just above the yearly high, with a plan to add to the position as it becomes profitable.
This analysis will catch many $ROKU longs by surprise who are preparing for further upside in the stock, but the volatile pattern and print of a lower low should caution any longs as to the downside risks from these elevated price levels.
Comment:
We're fast approaching our Fibonacci time interval inflection point with the daily seemingly looking to print a Harami. We will have to wait for the close, but this may be a good time to start nibbling.
Comment:
Looks like we're well on our way to the top. All that's left is to fall out of the ascending wedge, with the broad market upcoming weakness may happen this week. Skilled traders should start small positions on any pullbacks within the wedge.
Comment:
Roku has just fallen out of its channel, placing a short entry at the lower channel line at $68.80 is a low risk high reward entry! This one can fall a lot more.
Comment:
Great win on this one. I still am holding on as I think this will go lower.
Trade active:
We'll likely sell down until earnings in May. I'm moving stop down to my profit zone just in case. My target cover area is $44.81, which is the yearly fair value given by the fibonacci yearly pivot point; beyond that we have the top of a gap at $36.69, and the fill of the gap at $33.58.
