Roku very bullish cup and handle!Hi Traders!
It looks like our favourite streaming company $ROKU is forming a cup and handle pattern. Price has formed a handle by the means of a small downward movement. If price breaks the upper trend line of the handle, the cup and handle pattern is confirmed.
On top of that other technicals tell us:
- Price is supported by 50MA support.
- Ichimoku, the cloud of the current downward trend is very thin which indicates that the current small downward movement is very weak. Also, the price is fairly distanced above the cloud which is bullish.
- RSI is 47, this level has worked as support in the past lets see if this happens again!
- ADX on the hourly shows us that the short term downward trend is already weakening.
Also don´t forget that the chance of fundamentals bringing bullish momentum and sentiment on the stock is also very high with upcoming Q2 Earnings report. Both investors and analysist expect company growth! And with the delta covid variant concerning investors again, ROKU is a safe-haven for investors, as ROKU profited from the previous lockdowns.
Our trade plan:
Wait for price to break the upper trend line of the handle and enter at 418USD, and hold for at least 2 months first price target at 480USD an TP2 at 525USD. Stop loss at 398 just below the psychological level of 400USD and below the upper trend line, this would make this thesis invalid.
Disclaimer: This is not financial advice and for education all purposes only.
