Roku Test with Destiny A 2 year Support trendline A Buy?Hi Guys. So i am always on the lookout for Macro trend setups, signs and opportunities. I believe ROKU is potentially in a position to take a nice swing.
This analysis is on 1 day.
Notice we have reached a Sloping Support trendline from December 2022.
We've had 2 touches previous that resulted in bounces.
Trendline theory states trendlines can stay intact for atleast 3 touch points.
Owing to the idea that our recent touch point is a solid area to take positions. Has a decent probability of a bounce.
On top of that we have the Blue horizontal trendline, which acts as an added layer of Support.
Incase the black trendline does not hold, this would be next lvl.
Stop loss/limit should be placed below trendlines based on risk tolerance. Small positions can have a larger % loss, vise versa.
Now to Support my theory of this buying a solid area to take positions.
I have 3 indicators.
RSI which is in Oversold conditions after 3+ months.
On top of that the momentum indicators MACD and STOCH. Are also oversold.
MACD is signaling a waning bearish momentum. As seen by the light red histobar prints.
We are looking for and eventually should see Green bars and a bullish cross. Which can bring in necessary demand we need for bounce.
Also STOCH RSI is below the 20 lvl, but crossing Bullish as we speak.
This must continue and a bullish cross ABOVE 20 lvl, will also bring in demand and help with bounce.
If we see bullish changes in the momentum indicaotrs, i believe there would be a even higher probability of prices bouncing.
So pay attention, be diligent and manage risk accordingly.
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DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy.
