Here’s your trade on Roku ($ROKU) – June 21, 2021
ROKU
Roku ( NASDAQ: ROKU ); three days in a row the stock is up. From the bottom here on Wednesday to today this is a 17 percent move. That’s pretty big, not typically for Roku ( NASDAQ: ROKU ) when it’s in a big move but it is still in this consolidation phase here so I look at that as a pretty significant move.
Here’s the deal, it has been on volume. Thursday volume was higher than the 10-day, lower than the 50-day moving average so we will say it is right at average volume. But then the following day, on Friday, this was up. And if you remember that was “quadteenth” day, quad expiration, which only happens, you know, that quadruple witching thing, it only happens four times a year, the last Friday of every quarter. And so this stock was up, it was up good while a lot of them were down. And then today this thing runs even more.
I look at this as institutional buying and I really, really like this pattern. It is more than just a pattern, oh, a flat triangle. This is a real long little cup here, so to speak. And what it shows is, there is kind of some orderly distribution here. It fell a bit, more than a bit, especially if you are holding it., and now there is like an orderly accumulation. What we are looking for is, for all the supply at this level to get exhausted, boom, and then we will see a move to the upside.
I think this could become, and any time now, it’s not going to wait, in my view, it’s not going to wait for earnings in a month and a half or so. I think this stock just continues to run so you might want to look at this tomorrow. I would say if it’s up above 185.79, we will call it 185.80, yes, I can keep them that tight, then I think you go ahead and buy this stock and look for another up day. I just like the way it is kind of coming out of this squeeze here. The Bollinger Bands are expanding, what’s not to like? This, I think, is going to continue to move.
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