Roku’s stock (ROKU) has has a rough go of it since the July price high.
The pullback off the July high was a steep nearly 40 percent and stopped at our MOB band price target (support). The stock price also held the March and May lows.
ROKU is trying to reverse higher right here and I like it as a “trade” setup. There’s a nice momentum divergence as well. With recent volatility, it’s a good idea to set a stop between 280-305 (lower for long-term investors, higher for traders) and look for an initial move up to the falling 50-day moving average (sell some there and re-evaluate). A move to the 200-day moving average would also be a sell area to re-evaluate).
At any rate, we like it for move up to $350, then possibly $370 and re-evaluate for possibility of a move higher yet.
$ROKU Stock Chart
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