Roku Inc [NASDAQ: ROKU] continues its bullish trend that started with a bounce off the $100 support level. The last time I covered this stock, it was trading at $118.22, and it has since gained by 12.4% as of yesterday’s close. In the article titled, “Active Stocks: Roku Inc (ROKU) gains bullish momentum as key support holds”, I noted that ROKU was in the early stages of a bull trend and there was potential for more gains. Its performance since that time has vindicated my projection that ROKU was gaining bullish momentum in the near-term.
Looking at the chart above, there is a good chance that ROKU’s current bullish momentum could hold. That’s because, in Tuesday’s session it opened higher, after a two-day correction. This makes yesterday’s green candle, a bullish continuation candle, with the possibility of more gains in the future. If this momentum sustains, the next key resistance level for ROKU could be around the $143 – $152 ish level. Looking at the chart, the stock had high volume in yesterday’s session, standing at 26.59 million shares. This is a positive indicator of investor interest in ROKU. In terms of volatility, this stock was quite volatile in Tuesday’s session. It opened the day at $123.18, and oscillated between $122.53 and $132.95 before closing at $132.82.
In the day, the key factor that could play a role in Roku’s price action is news that it will carry Apple T.V. The company’s senior vice president and general manager Scott Rosenberg stated that this partnership will see customers enjoy a broader range of entertainment. With the potential for this partnership to boost user numbers, the company’s stock could gain going into the foreseeable future.
In the day, external factors to watch are largely geopolitical. Today, most global stocks are trading lower due to the tensions in Hong Kong and Brexit in Europe. The same could spill over into U.S markets when the markets open.