ROKU Walk Through
On January 22, the following alert was sent to subscribers, before the open;
W.D. Gann said the 50% retrace alone was a powerful trading concept.
ROKU shows a 50% retrace of the last swing.
Additionally, it is in the double down inside position or what I call a ‘crouch'.
We are long from last week awaiting the potential turn up.
ROKU should react one way or the other today: as the 58 high is straight across and opposite January 20-21 on my Square of 9 Wheel.
The combo of pattern combined with a time/price square-out presents an interesting setup on this 1st 50% pullback in a hot new issue.
This was followed up on, shortly after the open, with the following:
Before the open, we sent a note on a long ROKU setup.
Let's look at this morning's action.
ROKU opened down but quickly turned up triggering an Opening Range Breakout (ORB).
Notably, the down open did not violate the ‘crouch' position.
The down open followed by a breakout over the first half-hour's range is what I call a Catapult ORB.
In other words, ROKU pulled back the rubber band to kick off the week and found bids underscoring the viability of the setup.
We will complete our pilot long position here at the market maintaining our stop.
Good Luck,
Jeff
With the strength seen in ROKU, we sold half our position at 43 giving us a 2.16 gain. We are trailing the balance at 41.
*UPDATE*
Yesterday ROKU responded to a turning point mapped out ahead of time.
As the Square of 9 below shows ROKU’s 58 all-time high is 180 degrees straight across and opposite January 22.
At the same time ROKU showed a 50% retrace of the last swing… offering an idealized long set up in tandem with a flush out of the 50 day line.
A 10 min ROKU maps the action.
A Boomerang buy signal was triggered following an undercut of Friday’s flat when price knifed back through the flat.
An Opening Range Breakout confirmed the idea that ROKU had found bids and was poised for a ramp higher.
The little opening decline set the trap door as buyers were waiting.
Subscribers initiated a pilot position last week at 40.66 and completed it yesterday morning at 41.02 for an average cost of 40.84.
We sold half the ROKU position yesterday at 43 and the balance on this morning’s spike.