Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
ROKU stock price is in a correction phase and fell 8.02% in the previous week. It formed a double top bearish pattern and sellers succeeded in breaking down the neckline support.
Roku Inc. stock faced rejection from $75.00 and the price continued its downward momentum. It drops below the 50-day and 200-day EMA showcasing a downtrend and presence of sellers on the higher levels.
At the beginning of September, the ROKU stock price tried to break out of its previous swing high at $95.00. Sadly, the sellers were active and did not allow the buyers to give the follow-up momentum.
Slow and steady, prices declined by forming lower lows and eroded 50% of the gains generated in 2023. However, at present the price is near the demand zone and buyers will try their best to halt the downfall.
On the lower side, $60.00 is likely to act as immediate support for the bulls. If the sell-off continues in the coming week then more prices might test the $60.00 level. So, it will be interesting to see how prices react near to support which will decide the next direction.
Will ROKU Stock Price Decline Further?
ROKU stock price is on the seller’s radar and short-term pull back are facing rejection. The broader market index Nasdaq composite is mild bearish and closed the session with a decline of -1.23 %. So if the indices decline further then shares of Roku may get negatively impacted.
Till Roku’s share price is trading below $75.00, it is expected to remain in the bear’s grip. However, if the situation reverses and buyers are able to break the $75.00 hurdle then a 10% to 15% rise is possible.
The analysis suggests that Roku stock price is expected to consolidate in the range between $60.00 and $70.00 before deciding the next direction.
Roku Inc. Stock Price Prepares to React in Quarterly Earnings
Roku Inc.’s stock price formed an inverted hammer candle on a weekly chart. It shows that sellers are more active as compared to buyers.
The quarterly earnings are scheduled for November 1, 2023. Analysts estimated an EPS of -1.935 and revenue of $851.004 Million. If the company succeeds in meeting the estimates then correction in stock might take a halt and the price might bounce back.
On the other hand, if a company disappoints then it might raise concern for the long-term investors.
Conclusion
ROKU stock price is in a correction phase and drops below the $70.00 level. The stock forms a bearish pattern and erodes the previous gains. The technical analysis suggests, Roku’s share price is in a downtrend and may fall to $60.00.
Technical levels
- Resistance levels: $75.36 and $85.74
- Support levels: $60.00 and $53.67
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/15/roku-stock-price-below-70-will-the-correction-continue/