ROKU closes within prior day's range after lackluster session
Roku Inc. (ROKU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
ROKU finished the month 6.41% higher at 116.53 after gaining $1.48 (1.29%) today on low volume, slightly underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ROKU as at Jun 30, 2020):
Tuesday's trading range has been $3.99 (3.47%), that's far below the last trading month's daily average range of $7.13. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for ROKU.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on December 23, 2019, ROKU gained 3.87% on the following trading day.
Roku managed to close back above the 20-day moving average at 116.35. Prices are trading close to the key technical resistance level at 120.09 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the close-by swing low at 112.11 where further sell stops could get activated.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for Roku. Out of 201 times, ROKU closed lower 53.73% of the time on the next trading day after the market condition occurred.