Roku is one of our favorite names to trade even though it is quite volatile, especially during earnings season. Notice on the chart that the stock got drilled in February. A huge slide from the low 50’s did not stop until a bottom (45% lower!) was reached in April.
Since bottoming out, it has been on a slow upward progression. The recent action is classic bullish behavior: a breakout on good turnover with a confirmation only five days later on higher volume. Of course, the gap is the next target area, but that is a nice 25% move.
We believe the stock can make that move as evidenced by a steep RSI (see the top of the pane), surging money flow and a MACD buy signal. In our Explosive Options portfolio, we rolled up a nice winner and hold Aug 42 call strikes.
Roku(Nasdaq: ROKU) Video Chart Analysis
Take a deeper dive into the chart action on Roku Nasdaq: ROKU and learn how to read the technicals. Get Bob Lang’s full analysis as he marks up our chart of the week.
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Roku, Inc. operates a TV streaming platform. The company operates in two segments, Player and Platform. Its platform allows users to search, discover, and access approximately 500,000 movies and TV episodes, as well as live sports, music, news, and others. As of December 31, 2017, the company had 19.3 million active accounts. It also provides advertising products, including videos ads, interactive video ads, audience development promotions, and brand sponsorships; and manufactures, sells, and licenses TVs under the Roku TV name. In addition, the company offers streaming media players and accessories under the Roku brand that allow users to access its TV streaming platform; and sells branded channel buttons on remote controls. It provides its products and services through retailers and distributors, as well as directly to customers through its Website in the United States, Canada, the United Kingdom, France, the Republic of Ireland, and various Latin American countries. The company was founded in 2002 and is headquartered in Los Gatos, California.