Streaming Platform Setting up Surge to Highs from Coiled Flag
Roku (ROKU) shares of the streaming platform closed up strongly after Netflix’s report this week and now nearing an explosive breakout from its monthly value area where its coiled since the start of December as the lower edge of support near the 55 day MA held last week at 75. Now a close above 85 can trigger a surge to new highs and likely target the 90 level for a gap fill from last year’s selloff in February. ROKU eventually may want to target 100 as the round number objective with still size Feb $90 and $105 calls in open interest from buyers last month which may be positioning for earnings due 2/13.