Roku Inc. stock (NASDAQ: ROKU) price fell 20% in August 2023 and formed a bearish pattern.
Roku stock faces sharp rejection after hitting the 52-week high at $98.44. It seems that some big players used the quarterly earnings opportunity to sell the Roku shares from higher levels.
Roku stock price is near to the 50-day EMA which is acting as an immediate support level for the bulls. However, the share prices still hold the 200-day EMA showcasing that the positional trend is still in an upward direction.
Roku Inc. reported the previous quarter earnings on July 27, 2023. It reported an EPS of -0.76 and revenue of $847.186 Million. The company beats the EPS estimate by 39.97% and the revenue estimate by 9.36%.
Investors of Roku shares reacted positively and prices surged 31% in a single day. Buyers tried to hold the higher level but due to the strong presence of sellers, it faced rejection.
Slowly and steadily, the prices declined and retraced down to the EMA. Roku shares price closed the previous session at $76.95 with an intraday rise of 1.05%. The market capitalization stands at $10.89 Billion.
Will Roku Inc. Stock (NASDAQ: ROKU) Defends $70?
Roku Inc. stock (NASDAQ: ROKU) is in a correction phase and sellers are more active as compared to buyers. However, the Roku shares are near to the crucial support and buyers will try their best to defend.
Till Roku share price trades above $68.00, the probability of bounce back remains high. However, if a pullback comes, then $85.00 will act as an immediate hurdle.
On the other hand, if Roku shares drop below $68.00, then the next phase of downfall might trigger. The technical analysis suggests that Roku share price has corrected a lot so narrow-range consolidation is expected.
Roku Stock Price Analysis on Weekly Time Frame
Roku stock price fell for 4 consecutive weeks and showed the dominance of sellers. Meanwhile, the broader share market indices are mildly bearish which is affecting the Roku shares. However, if the overall market recovers then it will increase the possibility of a bounce in Roku.
The MACD curve slopes down and displays a negative crossover. It indicates bearishness. The super trend is favoring the bears and no strong signs of recovery are visible.
Conclusion
Roku Inc. stock price corrected 20% after hitting the 52-week high. The technical analysis suggests Roku stock has corrected a lot and the downfall might take a halt near $70.00.
Technical Levels
- Resistance Levels: $84.75 and $98.16
- Support Levels: $67.98 and $60.50
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.
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/2023/08/26/roku-inc-will-the-downfall-in-roku-stock-take-halt-near-70/