Roku's Stock Needs To See A Bounce Here At Support

Roku Inc. ROKU shares are moving lower Friday, following reports that Amazon.com, Inc. AMZN is launching its own TV in the U.S soon.

Roku shares look to be forming into a bullish continuation pattern. The stock was down 1% at $343.38 at time of publication.

See Also: Amazon-Branded TVs Could Come As Soon As Next Month

Roku Daily Chart Analysis

• The stock looks to be attempting to bounce off support in what technical traders call an ascending triangle pattern.
• The $480 price level has held as resistance multiple times in the past and may continue to act as resistance in the future. The stock has found support at the higher low trendline and may continue to do so in the future.
• The stock trades below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock is likely facing a period of bearish sentiment.
• Each of these moving averages may hold as a possible area of support in the future.
• The Relative Strength Index (RSI) saw a dip lower throughout the past couple of weeks and now sits at 36. This shows there has been more selling pressure than buying pressure in the stock.

What’s Next For Roku?

Bullish traders want to see the stock bounce at the higher low trendline and start working back toward resistance. Bulls then want to see the stock break above resistance and push higher, eventually consolidating while being able to hold its gains.

Bearish traders would like to see the stock fall below the higher low trendline and hold below it. Bears would like to see the RSI dip further and drop into the oversold zone starting at 30 and going all the way down to 0.