Roku Pulls Back After an Earnings Rally
Like many growth stocks, Roku pulled back sharply in 2022. But now after a year of consolidation, the streaming-video company may be trying to recover.
The first pattern on today’s chart is the bullish gap on July 28 after quarterly results beat estimates.
Second, ROKU pulled back to form a base around $76 after the rally. That was near the peaks of mid-June and mid-July. Has old resistance become new support?
Third, August’s trough represented a higher low than late July, continuing the series of higher lows that have developed all year. The recent spike above $98 was also the third successive higher high.
Next, the bounce in mid-August occurred at the 50-day simple moving average (SMA). The 50-day SMA additionally had a “golden cross” above the 200-day SMA in April, which may suggest its longer-term uptrend has turned more bullish.
Shorter term indicators could also be more positive as stochastics rebound from oversold and the 8-day exponential moving average (EMA) crossed back above the 21-day EMA.
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The first pattern on today’s chart is the bullish gap on July 28 after quarterly results beat estimates.
Second, ROKU pulled back to form a base around $76 after the rally. That was near the peaks of mid-June and mid-July. Has old resistance become new support?
Third, August’s trough represented a higher low than late July, continuing the series of higher lows that have developed all year. The recent spike above $98 was also the third successive higher high.
Next, the bounce in mid-August occurred at the 50-day simple moving average (SMA). The 50-day SMA additionally had a “golden cross” above the 200-day SMA in April, which may suggest its longer-term uptrend has turned more bullish.
Shorter term indicators could also be more positive as stochastics rebound from oversold and the 8-day exponential moving average (EMA) crossed back above the 21-day EMA.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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