TICKER: ROKU
BIAS: SHORT
SUPP: 39, 40
RES: 41.5, 42, 43, 44
GAP%: 1.2
AVGV: 9M
ATR: 3.4
NEWS: Roku (ROKU -2.4%) has pared earlier, deeper losses on the day after Citron Research deletes a tweet where the firm called Roku "uninvestable" and posts a clarification."To clarify, we are watching $ROKU from the side," Andrew Left's firm tweeted a few minutes ago. "After successfully shorting ROKU as it traded as high as $50 in late 2017, we reversed our position at $35 last year. With Apple teaming up with Sams, LG, and Vizio investors must consider the risk to the bigger story," Citron continues.
TRADING PLAN: ROKU held in lower ½ of range yesterday and a failure into the afternoon high $41.65 from yesterday could signal a short. Set alerts above $43 and watch the price action for a good short entry. I perceive this news as fairly neutral and I should also be open to the long side. A hold above $41.50 is a bullish sign for more upside continuation.
NOTES: The stock was alert triggered when it got above $43 and I watched the price again waiting for a high to be put in. I saw this happen when the price got up to around 43.60 and then suddenly sold off hard down to 43. I started looking for a short entry when the price couldn't get above 43.30. I tried 2 nervous starter positions and basically broke even on those. I tried again at $43.07 with more confidence and was able to hold the trade down to 42.34 and 42.53 as it sold off hard. I tried one last scalp at 43.26 since my ultimate target was 42 on this trade.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2019-01-09 15:07:54 | ROKU | sell | $43.140 | short |
2019-01-09 15:21:39 | ROKU | buy | $43.010 | 0 |
2019-01-09 15:24:38 | ROKU | sell | $43.070 | short |
2019-01-09 15:26:06 | ROKU | buy | $43.190 | 0 |
2019-01-09 15:27:54 | ROKU | sell | $43.070 | short |
2019-01-09 15:41:26 | ROKU | buy | $42.340 | short |
2019-01-09 15:43:31 | ROKU | buy | $42.530 | 0 |
2019-01-09 15:51:28 | ROKU | sell | $42.260 | short |
2019-01-09 15:53:26 | ROKU | buy | $42.030 | short |
2019-01-09 15:59:57 | ROKU | buy | $42.120 | 0 |
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