Roku Inc. (ROKU) is due to report their latest earnings after the close of trading Thursday. Prices have been in a severe decline since late July and we are hard pressed to find a durable low or a bottom formation. Let's check out the indicators because you never know when the market wants to surprise you.
In the daily bar chart of ROKU, below, we can see that prices have been trading below the declining 50-day moving average line for several months now. The slope of the slower-to-react 200-day line has been negative since October.
The On-Balance-Volume (OBV) line shows a matching decline from July as traders of ROKU have been more aggressive sellers.
The 12-day price momentum study shows higher lows from January as prices have made lower lows. This is a bullish divergence (the indicator improving as prices decline) and could foreshadow a rally.
Maybe earnings tonight will be bullish but I have no special knowledge of that.