I reviewed the charts of Roku (ROKU) and I wrote on Feb. 16 that "ROKU has certainly rallied but the stock has not made a bottom formation. V bottoms do exist but I prefer to buy breakouts from long bottoms. ROKU could trade higher but I am going to resist the temptation to chase it.
Let's see how that forecast turned out, and look at an updated daily bar chart of ROKU, below.
With hindsight I can see that ROKU corrected lower into the middle of May. ROKU is now poised to make an upside breakout. ROKU has turned upward and has closed above the 50-day and the 200-day moving average lines. The daily On-Balance-Volume (OBV) line has moved up to test/break its February high telling me that buyers of ROKU are being more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is crossing above the zero line for an outright buy signal.
In this weekly Japanese candlestick chart of ROKU, below, I can see some positive signals. Prices are trading above the 40-week moving average line. The weekly OBV line has made a double bottom and the MACD oscillator is only slightly below the zero line.
In this daily Point and Figure chart of ROKU, below, I can see an upside price target in the $70 area.
In this weekly Point and Figure chart of ROKU, below, I can see an upside price target in the $85 area.
Bottom line strategy: Traders could go long ROKU at current levels. Risk to $55. The $70 area and the $85 area are my price targets.
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