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- Roku stock price took support at $40 and formed a bullish candle after CEO explains why company is launching its own line of TVs
- Roku stock price is trading near 48 months low and may enter consolidation for base creation
Roku stock price is trading with mild bullish cues and prices are showing signs of short term bottom formation. Currently, ROKU : NASDAQ is trading at $43.60 with the intraday gains of 1.96%
Roku price needs consolidation for a base creation
On a daily time frame, Roku stock price is in a downtrend and continually slipping down while forming lower low swings. In November prices took support near $50.00 and tried to form a short term base in the range between $50.00 to $60.00 but due to strong bear grip, prices slipped below lower range which triggered more selloff and prices hit a low at $38.26. Recently, Roku came into the spotlight due to its positive news regarding product line expansion which has impacted the stock prices positively and it seems like buyers are expecting some short term base formation.
The 200 day EMA (green) which is far away from the current price indicates a trend to remain weak on a positional basis and the 50 day EMA (yellow) at $50.00 will act as an immediate hurdle for bulls followed by next hurdle at $60.00 and $74.00. On a lower side, $38.00 and $30.00 might act as support for short term base creation.
The stock price is down by 75% approx in the past one year and and have tried multiple times to sustain above 50 day EMA but got rejected indicates bear dominance on higher levels. Therefore, it might not be easy for buyers to reverse the trend in the favor of bulls. The MACD had generated positive crossover indicating a short term relief rally may trigger in coming weeks and the RSI at 42 reversing upside from the oversold zone denotes mild bullishness.
Summary
Roku stock is in a downtrend and buyers seem to be reluctant to accumulate at lower levels. As per technical analysis, prices are trading near to sold zone and short term relief rally may trigger in coming weeks but due to strong bear dominance on higher levels, prices were likely to consolidate in the range between $30.00 to $74.00 However, if prices drop below $30.00 bear’s may try to drag the prices further down towards $25.00 levels.
Technical levels
Resistance levels : $60.00 and $74.00
Support levels : $38.00 and $30.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
