Technology is the lifeblood of this stock market, Jim Cramer announced to his Mad Money viewers Thursday evening. It doesn't matter what your technology does, he said, as long as you're selling to the right types of customers.
The consumer is alive and well, which is why Roku (ROKU) shares are up 385% for the year. Roku is the go-to streaming media device, Cramer explained, and thanks to the strength of Disney+ (DIS) , shares were up another 4% Friday.
In this daily bar chart of ROKU, below, we can see that prices suffered a big decline in September. Prices fell below the 50-day moving average line, filled an old gap and pushed halfway into a support zone.
Prices looked pretty weak at the end of September but then came October. ROKU rallied more than halfway back by the end of the month and after an early November pullback prices are making gains above the late October high.
ROKU is back above the 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line held pretty steady as prices corrected the past few months suggesting that many investors held their positions though there was some selling on the margin. The OBV line has turned up again and is not far from making a new high.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and turning up now to a fresh outright go long signal.
In this weekly bar chart of ROKU, below, we can see a parabolic-like advance the past two years. Prices are above the rising 40-week moving average line.
The weekly OBV line is at a new high for the move up before prices which tells us that the OBV line can be a leading indicator at times.
The MACD oscillator is poised to cross to the upside for a fresh outright go long signal.
In this Point and Figure chart of ROKU, below, we can see that prices have made a new high for the move up to refresh the uptrend and we can also see that a $224 price objective is shown.
Bottom line strategy: It looks like ROKU has started a new uptrend and experienced traders could go long ROKU here if they can afford to risk a close below $135 for now. $200 and then $225 are our nearest price targets.