More Pain for Roku?
Roku fell sharply in late 2021 and the first half of 2022 as growth stocks collapsed. Now, after a period of consolidation, traders may look for the bearish move to continue.
The first pattern on today’s chart is the 200-day simple moving average (SMA). Prices tested this long-term trend marker over the last three months without breaking through it. ROKU slid back under the 200-day SMA in late April and has remained there since, a potential sign its long-term downtrend remains in effect.
Second, notice how the 100-day SMA never crossed above the 200-day SMA. That’s also consistent with a longer-term downtrend.
Third, a triangle formed and resolved to the downside. Bollinger Bandwidth widened at the same time, a sign of prices starting to move after compressing. MACD has also turned bearish.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on today’s chart is the 200-day simple moving average (SMA). Prices tested this long-term trend marker over the last three months without breaking through it. ROKU slid back under the 200-day SMA in late April and has remained there since, a potential sign its long-term downtrend remains in effect.
Second, notice how the 100-day SMA never crossed above the 200-day SMA. That’s also consistent with a longer-term downtrend.
Third, a triangle formed and resolved to the downside. Bollinger Bandwidth widened at the same time, a sign of prices starting to move after compressing. MACD has also turned bearish.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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