ROKU rounding bottomRoku looking to push higher before ER. I could see 190 to complete the rounding bottom
R1KU34 trade ideas
Time to ROCK ROKU shares After more than 70% plunge from the peak, it has also completed the ABCD pattern. I will wait a while more for it to establish more bullish patterns before nibbling some.
Elliot Wave Pattern Forming - ROKU shortThis is my first published chart haha.
I see an Elliot wave pattern forming. Potentially, you could trade this pattern long in the next day, then open a small protected short position.
Just something to keep an eye out for.
Let me know what you think!
Roku Analysis 09.02.2022Hello Traders,
welcome to this free and educational analysis.
I am going to explain where I think this asset is going to go over the next few days and weeks and where I would look for trading opportunities.
If you have any questions or suggestions which asset I should analyse tomorrow, please leave a comment below.
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$ROKU near heavy entry (3/5)Conviction: 3/5
Should probably wait for better entry around bottom support (4/5)
General Thesis
Weekly RSI good entry level
Daily RSI bounced off oversold, could still become bullish divergence with a lower low
bounced off near-term (2017) support trend line since inception
Growth
Gross margins (45%) is pretty steady the last few years, at all time highs
Revenue growth (50%) around historical average, down from 2020 pandemic highs
Value
P/S below average, looks like about historical median
P/FCF is very high (156), but about around mid-range of history
Fundamentals & Balance Sheet
quick ratio very attractive
Potential Risks
history is quite short, unclear how it will behave during recession
Daily RSI could spike down to oversold area some more
Historically no bullish divergence on weekly RSI before bounce
ROKU $170 reached. Next $200-$300, then $74In my previous post I outlined double top formation which suggested price should at least drop to $170. It happened even sooner than I expected.
What can be expected next? Well, now stock itself is deep in bear market territory. There aren’t some obvious technical set ups, but after such sharp declines it’s reasonable to expect sharp rallies (bounces). I am expecting us to see one and if so the first resistance would be just above $200 where weekly moving averages sit. It could bounce as far as $300 (to neck of the double top form) but I wouldn’t count on it. With FED rising rates and tightening monetary policy I see more pain ahead in the stock market over all. High growth names such as ROKU should be going lower with compressed multiples. There was so much hype around the stock at ATHs. When we hit the bottom there should be just as much negativity around it and I don’t see it just yet.
After the bounce my next price target is $74. compressed multiples, possible illiquidity events as some funds/etfs are forced to sell stock because of liquidations would drive price this low. Also, as mentioned in my prior post streaming services seem to be loosing competitive advantage and who knows if ROKU is able to hold on to its own.
Roku on the 2H Broadening Bottomwe zoom in on the broadening bottom on the 2 hour chart.
Originally a bullish reversal formation which arises from a downward trend in which the bulls and bears become indecisive and the price swings sideways.
In 58% of the cases there is a bullish exit but always take a downward breakout into account.
I also include a possible bear flag in the downward price targets.
1W:
1D
Keep calm, trade safe and manage your risk.
(Disclaimer: this is no financial advise)
ROKU uptrend weekly overviewThe American company Roku Inc. is a brand of hardware digital media players
and provide access to streaming media content from various online services. The first Roku model, co-developed with Netflix, was introduced in May 2008.
In the big picture an uptrend.
Where we find double tops at the top that form a bearish reversal M formation and have now played out.
The price is near the golden pocket of the fibonacci series and I encounter a positive divergence on the rsi, a formula to go up again.
However, from ATH the bears are well represented, also bear in mind a decline towards $84 isnt that crazy.
1D
2H
Keep calm, trade safe and manage your risk.
(Disclaimer: this is no financial advise)
$ROKU channel breakout 50% retraceRoku is in an extended downward channel. This will eventually breakout and retrace a maximum of 50% of entire channel range.
Time to turn Bullish on ROKU?The Basics:
Roku is a brand of hardware digital media players manufactured by American company Roku, Inc. They offer access to streaming media content from various online services. The first Roku model, developed in collaboration with Netflix, was introduced in May 2008.
Trade idea:
Although markets as a whole (especially some names in tech) have been taking a beating recently, it may be time to start looking for some discounted stocks to invest in. For the past several years, Roku has been giving very high returns to investors. Beginning trading around $20 a share to start 2018, it reached a high over $450 around the start of 2021. During this push to its all time high, there were several periods where the stock took over a 60% drawdown before recovering. We are down a little more than 60% from all time highs as I am writing this, and if Roku remains a player in the streaming industry I would expect high returns to continue going forwards. If this is the case, I would expect current prices to be a bargain in the coming years.
Risks:
The general market has been pulling back into the beginning of this year. If the market is setting a yearly low around the beginning of the year, I would expect this trade to lead to large returns. However, if the market has already set a high for the year and further downside is ahead of us, I would expect Roku to break out of its trend.
Possible pattern repeatI'm banking on Roku being at the bottom here and repeating the same legacy pattern it has in the past on the log chart
Bat Harmonic SetupSo here is another trade I took today as Q's started going sideways to down. No this is not a perfect Bat setup as I would have like to have it come up to ~175, but it did represent itself as a bearish trend trade. I think we may go test the last low as the Q's move sideways to down. Lets see how she goes! Cheers ;)
Roku LongAccumulate between 166.43 - 163.5
Target area 1 178
Target area 2 190
Target area 3 202
Stop loss 139
$ROKU interesting level here...Just pulled up this chart...I like it alot, trading at levels back to 2019, the company has grown since then, alot of potential
ROKU LongI think the worst is over for $ROKU. Market showed a good bounce towards the end of last week. $ROKU Bounced right off the weekly trendline. Great risk/reward here. Stops below the close of trendline on weekly timeframe.
Has ROKU finally found the bottom?ROKU has tanked drastically from it's high of 490 in July '21 to it's current price of 151 during the major selloff which has affected nearly all Cathie Wood-type stocks. Namely, unprofitable growth/tech stocks.
Interestingly enough, on January 24, ROKU printed a bullish hammer with above average volume, bouncing precisely on the 161.8% extension from the May '21 low to July high. Indicators are also signaling extreme oversold levels along with bullish divergence. The last time ROKU showed bullish divergence like this, it went on to make a new ATH.
Short term PT can be 160 or the small gapfill above at 166. Further out, we can see ROKU break out of the trend line and test 190. Of course, anything can happen and ROKU can freefall to pennyland especially given the current market volatility and climate we are in (inflation, anticipation of feds rate change, Russia/Ukraine) but I like my chances here. Just my hypothesis.
ROKU : RESET / POSITION TRADEThe Cable Box Is a Relic of the Past
Linear TV has offered viewers thousands of channels for a seemingly low price, but users today want more modern options and a better deal. While ~86 million households in the US still pay for linear TV, its days seem to be numbered.
Disruptive innovation typically follows a pattern: it evolves slowly at first and then all at once. Since peaking in 2011, the number of US linear TV households has declined 2.1% at an annual rate. That said, according to our research, by 2025, the number of US linear TV households will be cut nearly in half, from ~86 million at the start of 2020 to ~44 million, a level last seen more than 30 years ago.
As was the case with print media, we believe ad dollars are likely to shift from linear TV to more efficient platforms like streaming, a trend that traditional media companies have recognized. For example, during the past year alone, Comcast, Fox, and Viacom have acquired three players in the ad-supported streaming space: Xumo, Tubi, and Pluto TV, respectively.
That said, connected TV platforms are becoming a threat to traditional media companies. TV operating systems like Roku, Fire TV, and Android TV motivate many, if not most, television purchases. During the next five to 10 years, if the ad market for streaming soars, as we believe it will, TV operating systems like Roku will benefit from the share shift in revenues, taking 30% of the $70 billion ad load on each of their channels.
SOURCE : Nicholas Grous, Analyst, March 09, 2021, ARK INVEST
ark-invest.com
ROKU LongWeekly Demand Zone
Entry 155
Stop 138
Target 200
Risk management is much more important than a good entry point.
I am not a PRO trader.
In my trading plan, the Max Risk of each short term trade should be less than 1% of an account.
ROKU: Go short or go brokeI've seen a lot of users on here recommending their followers go long on ROKU and unfortunately anyone who followed their ideas lost a lot of money. You can't seem to reason with these permabulls either. Anyone who longed anything over the last 13 years would have surely made money and now have blind confidence in themselves. Not many of these users on this platform have traded during a bear market and it's going to eat a lot "influencers" or "professional analysts" alive.
Here's a few reasons to be short ROKU:
1.) We are going into a high interest rate environment and any stock with a high P/E is going to suffer the greatest. ROKU has a P/E of 77 as I write this.
2.) ROKU earnings estimates are $896 million and ROKU has never surpassed $700 million in revenue
3.) We are going into a bear market and if you look back 5 years you will find where this stock price is headed. I would not be surprised if this stock dips below $70 this year or early next year.
I hope this helps and don't fall on the bull sword that some of these analysts are going to have you fall on if you follow them.
Not financial advice
ROKU - Confluence zone (opportunity for bargain hunters)???Confluence includes:
Fib Extention and projection cluster zone
Diagonal and horizontal support confluence
Divergence building
Price fell 70% from High
While I feel there is a lot of competition in the field ROKU is playing in and longer-term they may have harder times, there is a potential that market bargain hunters jump in at these levels, the key will be to wait for a confirmation trigger confirmed by price action on a smaller time frame.
Market volatility is very high and the fact that this potential trade is against the trend dictates being very nimble.
Double top & falling wedgeBased on my TA, formed a double top and looks like still room to hit bottom.
ROKU: Area of InterestRoku has dropped by a lot. The recent general weakness in the markets and the crash on streaming companies have accelerated the price decline. However, there are confluence building to peak my interest.
1. RSI is at all time low reading, even in weekly timeframe
2. Price is almost getting at .618 retrace from all time low to all time high
3. Approaching median line on the pitchfork at the same area of the important fib level
4. A large volume node on the weekly scale and even on daily timeframe at the same area
5. at each major low price is moving up a fib level on the pitchfork. The median line can provide a good turning point
Even though price can definitely fall lower, the boxed zone will be my first area of interest, at least for a nice bounce t0wards $200. I will get in with a tight stop loss just below the box and see what happens. Potentially a great risk to reward play.
