Roku Could Be TurningRoku has been one of the top performing growth stocks since going public in late 2017. Now, after a healthy pullback, it may be ready to move again.
The main pattern on today’s chart is the 50-day simple moving average (SMA). This line was resistance in April and late May. But now ROKU is attempting to break it. Notice how the 50-day SMA is now rising (illustrated by our Moving Average Speed custom script).
ROKU also tested its 200-day SMA last month and quickly bounced after earnings beat estimates. Short-term momentum was still bearish at the time, but now it’s potentially positive because the 8-day exponential moving average (EMA) has risen above the 21-day EMA. MACD is giving a similar signal.
Another interesting feature is the descending trendline that was resistance between February and late April. Prices broke above it in 2-1/2 weeks ago and now it’s become support.
Finally, the weekly chart shows a bullish inside candle forming. That can be a sign of price tightening and preparing for a change of direction.
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