ROKU - Falling Wedge Breakout + Bull Flag

31 mar 2022

Weekly Timeframe:

• Strong Hidden Bullish Divergence
  
• "Batman" Pattern
  
• Major volume spike at $100 bottom, aligning with previous support areas
  

Daily Timeframe:

• Broke out of a Falling Wedge
  
• Bounced at an RSI-based supply zone
  
• Formed Bull Flag just under supply zone and volume shelf
  

65m Timeframe:

• Bull Flag under supply zone
  
• Rejected Trendline formed from March 15th bottom
  
• Volume and flow suggesting short term bullish sentiment
  

I expect a bounce for the severely beaten-down stock. Whether it will be a full revival to all-time highs, I cannot say, though I am quite doubtful. Playing the short term bounce. I am leaning bullish, but will stay neutral and watch price action.

With a breakout from the bull flag:

• PT1: $136
  
• PT2: $140
  
• PT3: $142
  
• PT4 (Stretch): $148
  

Failing the trendline would invalidate this setup and could be cause for puts.

2 apr 2022

Nota

Not entirely off this setup yet. Caught itself at the supply zone. May swing calls next week.

5 apr 2022

Nota

Made 100% on calls. On to the next.