Short ROKU CMP $180.41Short ROKU CMP $180.41. Price continue to fall for $ROKU. After my recent short target $205 area achieved, I think stock has more room to go down and is heading towards $160 area where it started it's major run. MACD turned negative and it's trading below all the major moving averages. Short target of $160 area in coming days. Various support and resistance are marked in cyan color lines. Setup is invalid if it trades above 20 SMA price level.
ROKU trade ideas
ROKU the next Netflix ? In terms of selloff i mean.
If you remember, Roku was a Netflix project in 2007.
Roku TV founder Anthony Wood created Roku and started the streaming boxes without Netflix taking a risk.
ROKU is embarking on its original content journey in a market with strong competitors.
Waiting for the stock to come to the high volume buy area.
ROKU: IS THIS WHERE WE GO UP AGAIN?ROKU:
Weekly chart currently sitting on the 200ma .
At historical support -resistance zone.
Demark Sequential Buy 9 daily.
RSI a bit oversold on weekly. Bullish divergence on daily.
Are we bouncing here or do we keep going down?
Whatever is it, I like the good risk vs reward long entry here.
You might argue that we're going against the trend and you're right, however he odds favour the bulls.
Long term investment, swing or short term trade? Your choice.
Stop around 155.
Trade safe!
$ROKU, trading it 1/20For 1/20, intraday trading ideas for options; For red or green market day. #options #daytrading
Break over 174 (entry, long), it can see 180-184 (exit)
Break below 162 (entry, short), it can see 152-156 (exit)
Option Trading 101:
Risk what you can lose (0.5%-5%)
Watch buyers and sellers (their interactions & sentiment, ex. exhaustion of buying or selling, etc.) in strikes that you’re watching & the ticker too; this is how YOU manage YOUR trade.
Consider following and checking out bio and prior posts and recaps (on twitter ), have a great one. NOT FINANCIAL ADVICE.
$ROKU, trading it 1/19For 1/19, intraday trading ideas for options; For red or green market day. #options #daytrading
Break over 174 (entry, long), it can see 180-184 (exit)
Break below 162 (entry, short), it can see 152-156 (exit)
Option Trading 101:
Risk what you can lose (0.5%-5%)
Watch buyers and sellers (their interactions & sentiment, ex. exhaustion of buying or selling, etc.) in strikes that you’re watching & the ticker too; this is how YOU manage YOUR trade.
Consider following and checking out bio and prior posts and recaps (on twitter ), have a great one. NOT FINANCIAL ADVICE.
$ROKU, trading it 1/18For 1/18, intraday trading ideas for options; For red or green market day. #options #daytrading
Break over 171 (entry, long), it can see 177-181 (exit)
Break below 159 (entry, short), it can see 149-153 (exit)
Option Trading 101:
Risk what you can lose (0.5%-5%)
Watch buyers and sellers (their interactions & sentiment, ex. exhaustion of buying or selling, etc.) in strikes that you’re watching & the ticker too; this is how YOU manage YOUR trade.
Consider following and checking out bio and prior posts and recaps (on twitter ), have a great one. NOT FINANCIAL ADVICE.
$ROKU, trading it 1/14For 1/14, intraday trading ideas for options; For red or green market day. #options #daytrading
Break over 176 (entry, long), it can see 182-186 (exit)
Break below 167 (entry, short), it can see 157-161 (exit)
Option Trading 101:
Risk what you can lose (0.5%-5%)
Watch buyers and sellers (their interactions & sentiment, ex. exhaustion of buying or selling, etc.) in strikes that you’re watching & the ticker too; this is how YOU manage YOUR trade.
Consider following and checking out bio and prior posts and recaps (on twitter ), have a great one. NOT FINANCIAL ADVICE.
$ROKU, trading it 1/13 For 1/13, intraday trading ideas for options; For red or green market day. #options #daytrading
Break over 183 (entry, long), it can see 190-194 (exit)
Break below 173 (entry, short), it can see 162-166 (exit)
Option Trading 101:
Risk what you can lose (0.5%-5%)
Watch buyers and sellers (their interactions & sentiment, ex. exhaustion of buying or selling, etc.) in strikes that you’re watching & the ticker too; this is how YOU manage YOUR trade.
Consider following and checking out bio and prior posts and recaps (on twitter ), have a great one. NOT FINANCIAL ADVICE.
A chart is better than a thousand tales..!On July 15th,2021 when was 404 I published my short analysis for ROKU! in less than 6 months, it went down almost 60% to 173.65..!
Now I think it could experience a nice 20-30% rebound..!
Best,
Moshkelgosha
DISCLAIMER
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ROKU: still more sellingROKU may try to retest the 2.618 fib retracement, but overall I am short this stock. As this company has one of the highest P/E ratios in the tech sector, that is a main reason to be short especially during a rising interest rate environment. I am short to $141 which would bring this stock to the 3.618 fib retracement level.
Not financial advice
ROKU bullish setup ROKU hitting a big buy level for me here. Major TL support and major price zone tagged here. Targeting a run towards 199-200 which coincides w prior pivot level and Fibonacci retracement level. I am taking next weeks 195/205 call debit spreads for 2.25 debit, looking for 4.00 on half and then looking to add a 205/215 call credit spread to turn it into a lower risk to risk free butterfly. Trade at your own risk
Roku entering DCA zoneAfter falling 64% from its highs over the last 5 months, Roku appears to be heading into solid support. We appear to be at the bottom of a Falling Wedge (bullish)... The tip of the wedge lands in a Supply Zone... We have bullish divergence on the daily chart... and we have multi-level Seller Exhaustion. On the down side, we still appear to have heavy resistance and negative pressure to work through. We could see a small bounce here, but I think it's likely that price still has a little more to drop. I think this is a good place to start averaging into a long position.
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No clear bottom for ROKUIn this post I will lay out what I believe the bull and bear cases are for ROKU while showing a pattern I noticed this week on the 4-hour timeframe that is holding steady on the daily, weekly and monthly charts.
NASDAQ:ROKU Technical analysis
ROKU is in freefall territory with no clear bottom in sight. When I looked at the 4-hour timeframe at the end of the year, I saw a potential head & shoulders pattern emerging since late December. Additionally, ROKU has already been in a steady declining channel since late July. ROKU just recently broke a low not seen Nov of '20 (see the yellow arrow).
If we look at the MACD we see that the signal line has not crossed back over. This lends itself to confirm that the bigger downtrend is still intact.
Additionally, we are consistently hitting lower lows and lower highs more often than not on both short term and longer-term timeframe charts. Most notably the 4-hour (not pictured), daily, weekly, and monthly charts (not pictured).
The RSI indicates oversold values. One could make the contrarian argument that this represents a buying opportunity. The problem I see with this bullish stance is that the longer-term trend has yet to reverse itself.
Bull case: ROKU is a streaming device platform company that is aligning itself strategically with companies that are primarily hardware device manufacturers for the integration of its players/platform and accessories. ROKU is still a relatively young company as it was founded in 2002 and is going through similar growing pains that other early-stage alternative technology entertainment companies have gone though. ROKU is also maintaining partnerships with other media companies that are leaders in original content such as YouTube TV and Apple TV. The revenue is growing in the right direction.
Bear case: ROKU recently has seen declining growth in its subscription service and that has helped accelerate a downward decline in the stock price. While companies that largely rely on subscribers and advertising revenue do not report subscription data in a format that is easy to compare, the sentiment with ROKU as of late has largely been negative due to the numbers the company has reported. It is hard to compare ROKU to any other technology company because it is not successfully separating itself from any would be competitors (even as it tries to align itself with those same companies). Most of these companies (Netflix, Apple, Alphabet, etc) will not see significant upside or downside by aligning or competing directly with ROKU as it is a relatively small player in terms of market capitalization. Alphabet is a much broader and larger tech company that also creates its own streaming devices. Apple does the same and also creates its own original content. ROKU is neither an OEM nor carved out a niche as an original content creator. When's the last time anybody heard serious buzz regarding a show you could only watch on ROKU?
This is where ROKU falls short. Unless it can find a way to set itself apart by creating original content and/or innovating its platform as a host to content providers the business itself appears unsustainable. While the company's revenue is growing, so is its debt. The FCF and revenue are growing at a much faster rate, but this can largely be explained by the work-from-home boom that many companies such as ROKU benefited from during the pandemic.
Since Q1 '21 the quarterly profit margin has been on a decline and the debt to asset ratio has started a positive trend over the last 2 quarters when it appeared it was decreasing and leveling off. Additionally, the stock still trades at a very high EPS, even after being down by more than 50% from all-time highs.
Summary
In its current form, it is hard to picture a future where ROKU successfully plays a middleman of sorts in a digital online entertainment driven world as more and more consumers move towards cutting the cord. Content is king and anybody with an internet connection and an HDMI cable can connect their laptop to an HDTV to stream any service(s) they subscribe to. Additionally, most OEMs make their own smart TVs and enabled devices. And as stated above, there are a range of dongles that provide the ability to cast one's phone or computer over their home Wi-Fi network. I project more pain for ROKU ahead and no clear bottom in sight.
$ROKU, trading it 1/10For 1/10, intraday trading ideas for options; For red or green market day. #options #daytrading
Break over 190 (entry, long), it can see 198-202 (exit)
Break below 178 (entry, short), it can see 166-170 (exit)
Option Trading 101:
Risk what you can lose (0.5%-5%)
Watch buyers and sellers (their interactions & sentiment, ex. exhaustion of buying or selling, etc.) in strikes that you’re watching & the ticker too; this is how YOU manage YOUR trade.
Consider following and checking out bio and prior posts and recaps (on twitter), have a great one. Not financial advice.