Swing Trade Idea (ROKU) – November 29, 2022
Our bullish trade for Tuesday, November 29th is Roku Inc. ROKU is part of the Consumer Staples Sector, which has performed at 6.09% over the last month, with ROKU currently underperforming relative to its sector at 3.14% over the same period.
ROKU found support at a long-term key level at around $45, from where it is trending higher. As this is a counter-trend trade, we predict ROKU to bounce higher with the next resistance at $79, and in our opinion, provides a good risk/reward bullish entry.
As a close, if ROKU were to trade below $47 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also want to consider cutting losses on this options trade if the value of the vertical spread moves above $6.02.
