Roku (ROKU) has made an amazing recovery since perfectly testing the $100 level. The news was all bad about competition, but analysts eventually came to the rescue with reassuring reiterations and upgrades. The change in sentiment was confirmed when ROKU printed a 50DMA breakout. Now, the stock has very well-defined bullish breakout and bearish breakdown areas. I contend breaches into these areas will initiate sustained moves.
The bullish breakout area starts with the brief area of congestion where ROKU rested for several days before resuming its sharp tumble from all-time highs. The bearish breakdown area starts below the previous consolidation that formed a launching pad around ROKU's 50DMA. That trendline is effective support.
ROKU
The bullish breakout area starts with the brief area of congestion where ROKU rested for several days before resuming its sharp tumble from all-time highs. The bearish breakdown area starts below the previous consolidation that formed a launching pad around ROKU's 50DMA. That trendline is effective support.
ROKU