Roku (ROKU) has been beaten up the past couple of weeks. Fortunately for me that has given us a great entry opportunity to buy the stock. This is a stock I have purchased as I have purchased. Here I will describe where I purchased ROKU and where the exit is. The trade setup is my Lightning Trade setup and it is off of the 15 minute chart so hopefully it doesn’t take months or years to complete.
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ROKU – The Plunge
About 14 trading days ago ROKU took a big hit. Their stock price went from around $59.18 to $40 in about 3 trading days. This has given me a great opportunity to buy the stock at a very depleted price. Here is an article that goes over a little bit of the reason why the stock has declined so rapidly: https://finmercury.com/2018/11/28/at-roku-inc-roku-the-share-price-got-a-bit-ahead-of-the-fundamentals/.
I own a couple or ROKU’s and they are great. I’ve cut the cord and will probably never go back to cable again. We currently use YouTubeTV and Philo for our streaming services. We also have NETFLIX and Amazon Prime, but we had those 2 before we cut the cord. YouTubeTV and Philo both have unlimited cloud DVR storage which was a big factor in cutting the cord. YouTubeTV is excellent, especially for sports which is the main reason I use it. Philo is less heard of and doesn’t offer sports channels. What it does is offer the Cooking Network, ID, and a couple of other channels that YouTubeTV doesn’t offer which makes it a great compliment.
Anyways, there is a tangent for you. The morale of that story is streaming TV services are great because now I don’t have to deal with the equipment from cable companies and haggle with them every year when the “discount” runs out and I have to renegotiate.
The Trade
At the time of writing this on 11/29/2018 ROKU is trading around $39.69. In the chart below you can see where I have my entry and exit. I’ll go over the details further.
The trade setup for this as I mentioned earlier is my Lightning Trade setup. I am also using the 15 minute charts so hopefully this trade won’t take months or even years to complete.
That is the main issue with using the Daily time-frame or my Bread and Butter Trade because they can take a long time to complete. The Lightning Trade setup seems to work much faster and still gives really good returns. It is the main setup I now use on Forex.
Right now price is around $39.69, that is close to where I am long. I have my exit setup at $53.00. This is a little below the grey box. The bottom of the grey box is the 50% Fibonacci retracement level from a move above that never completed. That is why this trade has given such an amazing setup for a really nice ROI.
Conclusion
I am long around $39.60 and my exit is at $53.00. My exit will not move again even if price moves against me. Now I could exit anytime I want to with a profit but right now $53.00 is what I am shooting for. If price moves against me I might get in at an even better price but the exit at $53.00 will not move.
Take my opinion with a grain of salt because I could also be wrong and I am not a financial adviser. You have to decide for yourself if it fits with your risk tolerance.
But I think the setup here looks very enticing and using the Lightning Trade I see some great profits in the near future.
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