Roku Inc. (ROKU) was favored by Jim Cramer in Thursday's "Mad Money" program. Let's sit on the couch and take a look at the charts and indicators of ROKU.
In this daily bar chart of ROKU, below, we can see that prices are testing the rebound highs of April and May. Prices are trading above the bottoming 200-day moving average line and the rising 50-day moving average line. The On-Balance-Volume (OBV) line has been firming since March and looks poised to break a longer-term downward trend from September. The Moving Average Convergence Divergence (MACD) oscillator is turning up above the zero-line again for an outright go-long signal.
In this weekly bar chart of ROKU, below, we can see prices are ready to test a downtrend line from the high of 2019. Prices are above the declining 40-week moving average line. The weekly OBV line has been steady since November and looks poised to strengthen. The MACD oscillator is just below the zero line, so we could see a buy signal soon.
In this daily Point and Figure chart of ROKU, below, we can see a potential upside price target of $145.
In this weekly close only Point and Figure chart of ROKU, below, we can see that the software is projecting a new high of $181.
Bottom line strategy: ROKU looks ready to make an upside move over the highs of April and May. Traders could go long at current levels risking a close below $115 for now. $145 and then $181 are the price targets for now.
