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- 1 Roku stock price up by 7.08% on the weekly chart; defends the $50.00 support.
- 2 Roku stock price is stuck between its 50-day EMA and 200-day EMA.
- 3 Roku Stock (NASDAQ: ROKU) lost the gains generated after the release of Q4 earnings.
Roku stock price is up by 7.08% on the weekly chart and formed a short term bullish reversal pattern. However, the price is still below the 200-day EMA which showcases downtrend on the positional basis. Roku stock price witnessed a massive sell-off from the recent peak at $76.75 and lost gains generated after the release of fourth quarter earnings. However, Roku stock bulls succeeded in defending the $50.00 support which shows that buyers are active at the lower levels.
Roku stock price (NASDAQ: ROKU) closed the previous session at $64.24 with a loss of -1.44% and mrket capitalization stands at $9.00 billion at press time. In mid-January, Roku stock managed to push prices above the 50-day EMA and showed signs of a trend reversal. Later, prices started rising up by forming higher high swings. During the rally, it also witnessed minor profit booking from resistance levels.
Roku Inc released its fourth quarter earnings on February 15, 2023. The figures in the report beat the EPS and revenue estimates. The market also reacted positively to the earnings report and prices shot up 11% in a single day. However, the rally was not sustainable and prices began to reverse in a downward direction after getting rejection at $76.75. Therefore, $76.75 will act as an immediate resistance for the bulls followed by next resistance at $86.52.
Will Roku Stock Continue to Rise?
Roku stock price recovered by nearly 20% for the recent swing low at $54.50 and managed to hold prices above the 50-day EMA. However, the overall market sentiment is still bearish and the probability of continuing the upward momentum is low. Moreover, if the overall market sentiment remains bearish, then Roku stock bears might again try to pull the price below $50.00 level.
Technical indicators suggest prices are lacking the momentum on the higher level and it is expected to trade with mild bearishness. The MACD is flat and sloping sideways indicating consolidation in the coming days. The Relative strength Index (RSI) at 55 also sloping sideways reflecting a tight tug of war between buyers and sellers.
Conclusion
Roku stock price gained 7.08% on a weekly basis but prices seem to be lacking momentum on the higher levels. Technical analysis of Roku suggests that prices might face resistance on higher levels and are expected to consolidate in the narrow range.
Technical levels
Resistance levels : $76.00 and $86.00
Support levels : $50.00 and $40.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes 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.
