Roku Stock Dips Ahead Of Earnings Report: What To Watch For

Roku Inc (NASDAQ: ROKU) shares are trading lower Thursday in sympathy with other streaming stocks amid general market weakness. The stock has been unable to break the strong downward trend it has been trading in. 

The company is set to report fourth-quarter earnings after market close.

Roku was down 10.28% at $144.83 at publication Thursday afternoon. 

See Also: How To Buy Roku Stock

Roku Daily Chart Analysis

• Shares broke below support in a sideways channel when the price was able to fall below the $240 level. The stock then tried to recover this level and was unable to, holding it as an area of resistance. The downward trend may continue if the stock continues to form lower highs.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a dip lower the past couple of days and now sits at 37 on the indicator. This shows the stock is seeing more sellers than it is buyers and the amount of selling pressure has been increasing.

What’s Next For Roku?

Roku falling below the $240 level was bearish and when it was able to hold this level as resistance it confirmed the bearish trend. As the stock continues to fade lower it has been seeing increasing selling pressure. The stock may turn around when the buying pressure starts to increase again and the RSI can cross back above the middle line.

Bulls want this RSI cross as well as a cross above the moving averages. Bearish traders are in control of the stock and want it to continue to trade lower and hold below the moving averages.

Photo: Courtesy Roku