ROKU stock has been rising since December last year, following a strong support level of around $38. The stock price also respected the Fibonacci retracement levels of 78.60%, 50.00%, 38.20%, and 23.60% during its uptrend.
The stock reached a high of $98 in August 2023 but then dropped after the earnings report in June due to profit-booking. The stock found support near $75, which coincides with the previous low and the 38.20% Fibonacci level. However, the stock has broken below the trendline that has been supporting it since May 2023.
Based on recent data, the revenue of Q2, 2023 was $847.19 Million with a loss in net income of 107.59 Million. Moreover, the ROKU stock estimated EPS for Q2 23 was -1.266, and the reported EPS was -0.76 which gave a positive surprise of 39.97%. Moreover, the forecasted EPS for the next quarter is positive at -1.704.
According to the financial website Simply Wall St., Roku has been experiencing a negative earnings growth rate of -40% per year, while the Entertainment industry as a whole has been growing its earnings by 13.2% annually. On the other hand, Roku’s revenues have been increasing by 32.5% per year on average, which is a positive sign for the company.
Technical Analysis of ROKU Stock Price in 1-D Timeframe
ROKU stock price was at $76.26 with an intraday decrease of 1.98%. ROKU stock average volume is 7.088 Million and the current volume is 4.941 Million where the current volume is below average volume. The stock has a market cap of $10.791 Billion and floating shares are 123.311 Million.
At the time of publishing, Roku Inc. (NASDAQ: ROKU) is trading below the major 20, and 50-day EMA (exponential moving averages), which rejects the ROKU price trend. The current value of RSI is 41.87 points. The 14 SMA is below the median line at 52.18 points.
The MACD line at 0.0244 and signal line at 0.7343 are below the zero line and both lines have crossed each other and the histogram width is increasing; suggesting negativity in stock.
The current stock price of ROKU stock might achieve more if it successfully rebounds from the 38.20% Fibonacci level, there is a possibility for the price to move upwards, and probably the next resistance level could become $84 and $88.
On the other hand, the stock has already slipped from the long followed trendline, if the ROKU stock price breaks below the previous swing low or below 38.20% fib level, then the probable support would be $72 and $68.
Summary
Roku Inc. (NASDAQ: ROKU) stock price is showing a bearish trend on the 1-D time frame as the dividend date is approaching. However, the technical indicators are negative due to heavy profit booking and suggest that the price may drop below the previous swing low if the selling pressure continues. However, if it rebounds from the 38.20% Fibonacci level, there could still be a chance left for it to rise above the hurdles.
Technical Levels
- Support levels: $72 and $68
- Resistance levels: $84 and $88
Disclaimer
In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/16/roku-stock-forecast-can-choch-lead-to-nasdaq-roku-downfall/