ROKU closes lower for the 2nd day in a row
Roku Inc. (ROKU) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ROKU ended the week -3.91% lower at 108.51 after losing $6.19 (-5.4%) today, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 108.51 marks the lowest recorded closing price since April 14th. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (ROKU as at May 22, 2020):
Friday's trading range has been $5.47 (4.9%), that's below the last trading month's daily average range of $7.20. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ROKU.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, ROKU actually gained 0.88% on the following trading day.
Prices are trading close to the key technical support level at 105.65 (S1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Roku. Out of 55 times, ROKU closed higher 54.55% 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 49.09% with an average market move of 3.19%.