Indices pulled back a couple days ago, but have been moving back towards ATHs. ROKU has been in a longterm downtrend, but seems to have bottomed recently. Yesterday it had news about renewing a deal with Youtube and it was one of the strongest stocks on my radar. On this day VIX was in the low twenties.
This day ROKU had a strong opening drive to the 265 level, where it double topped. From there it sold sharply to 245 where it found some support. At this point I felt that it was completely oversold and was looking for a retracement bounce towards VWAP. Had that happened this would have been one stellar trade.
I took a position slightly above the 245 level risking the low of the consolidation. This entry could have been better for sure. The really good risk to reward entries were lower in the 244.50 area.
As ROKU moved higher I stared taking profits and moved my stop to break even. That got stopped and then I tried again for a second stop out, which were essentially a scratch pair. Finally, when 245 rebid I took one last bite and was able to make some money as ROKU spiked up to 248 before selling back to my entry and hitting my trail stop.
This was my only live trade today as I was setting up DAS otherwise. Overall, this is probably a B setup. For sure the sideways action at 244.50 was different than what came before and there was a good chance of a pullback or even reversal (given how strong ROKU was the day before). In the end, ROKU had gotten ahead of itself and it sold down to 235 after this trade. On a side note, I was swinging a very small position in my longterm account and I sold that at 260-261 area on the open for a modest winner. If I had held I would already be back bag holding.
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