NASDAQ:ROKU may be ready to breakout.

Our stock screener has spotted ROKU INC (NASDAQ:ROKU) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:ROKU.

What is the technical picture of NASDAQ:ROKU telling us.

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Overall ROKU gets a technical rating of 8 out of 10. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, ROKU is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• ROKU is part of the Entertainment industry. There are 72 other stocks in this industry. ROKU outperforms 70% of them.
• Looking at the yearly performance, ROKU did better than 73% of all other stocks. However, this relatively good performance is mostly due to a recent big move.
• ROKU is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so ROKU is lagging the market.
• In the last month ROKU has a been trading in the 72.72 - 80.77 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of ROKU contains the most current technical analsysis.

Why is NASDAQ:ROKU a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:ROKU exhibits a 9 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, ROKU also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 79.21. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 76.79, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:ROKU?

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Please note that this article should not be construed as trading advice. The information provided is solely based on automated technical analysis and serves to highlight technical observations. It is important to conduct your own analysis and make trading decisions based on your own judgment and responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.