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Roku Inc (ROKU) Is Soaring, Where Is Resistance?

Roku Inc (ROKU) Is Soaring, Where Is Resistance?

Leading internet streaming platform and device maker, Roku Inc (NASDAQ:ROKU), has been one of the hottest stock in the market for most of 2019. In fact, since August 6, 2019 the stock has soared higher by more than 70.0 points and currently trades around the $166.00 level. When trying to find and figure out how high a stock could go we can apply several techniques using technical analysis. One of my favorite tools to use is the Gann Wheel in combination with other technical chart patterns and tools. At this time, the Gann Wheel is telling me that ROKU stock could reach the $172.00 area. As you all know, the stock is already very extended and overbought, but the trend is up and it is very difficult to fight the trend.

Therefore, if you want to speculate on a pullback in ROKU it is best to play the stock using put options. This way you only risk a small amount of capital and can possibly capture a large percentage gain. Remember, a stock like this is certainly a take-over candidate so trying to short it outright presents too much risk in my opinion.