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Roku (ROKU) Just Reclaimed the 200-Day Moving Average
Roku (ROKU - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, ROKU broke through the 200-day moving average, which suggests a long-term bullish trend.
The 200-day simple moving average is a useful tool for traders and analysts, establishing market trends for stocks, commodities, indexes, and other financial instruments over the long term. The marker moves higher or lower along with longer-term price moves, and serves as a support or resistance level.
ROKU has rallied 21.6% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests ROKU could be on the verge of another move higher.
The bullish case solidifies once investors consider ROKU's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 8 higher, while the consensus estimate has increased too.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on ROKU for more gains in the near future.