ROKU closes below its opening price unable to hold early session gains
Roku Inc. (ROKU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ROKU finished Thursday at 89.75 losing $5.10 (-5.38%), significantly underperforming the S&P 500 (6.24%). Trading $3.24 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on March 20th, ROKU actually gained 17.51% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ROKU as at Mar 26, 2020):
Thursday's trading range has been $9.42 (10.11%), that's slightly above the last trading month's daily average range of $9.36. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ROKU.
Roku closed back below the 20-day moving average at 91.06.
Although the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Roku. Out of 53 times, ROKU closed higher 56.60% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 47.17% with an average market move of -0.14%.