Roku (ROKU) Rises Within Price Channel After New Launch

Roku, Inc. (ROKU) shares jumped nearly 2% during Monday's session after the company launched its new streaming lineup in the United States.

Key Takeaways

  • Roku shares moved higher during Monday's session after the company launched its new streaming lineup in the United States.
  • The new products include a redesign of its flagship Roku Ultra, as well as a premium soundbar to help declutter home entertainment systems.
  • The stock continues to trade in a rising channel, which means that traders could see more upside ahead.

The newly launched devices include the all-new and redesigned Roku Ultra (MSRP $99.99) and the Roku Streambar (MSRP $129.99). In addition, the company announced the launch of Roku OS 9.4, which offers new ways to access content quickly. The new update supports Apple AirPlay 2 and HomeKit while offering an all-new mobile app for The Roku Channel.

Last week, the company announced a partnership with Comcast Corporation's (CMCSA) NBCUniversal and its Peacock streaming service. Under the deal, Roku subscribers will have streaming access to Peacock, bringing the streaming service to over 100 million people around the nation. The deal was widely praised by analysts, saying that it opens the door to greater ad revenue.

Chart showing the share price performance of Roku, Inc. (ROKU)

From a technical standpoint, Roku stock continues to trend higher in a rising price channel. The relative strength index (RSI) remains neutral with a reading of 59.70, but the moving average convergence divergence (MACD) remains in a bullish uptrend. These indicators suggest that the stock has more room to run over the coming sessions.

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.

Traders should watch for a move toward upper trendline resistance at around $200.00 over the coming sessions. If the stock breaks out, traders could see a move toward fresh all-time highs. If the stock moves lower, traders could see a move toward trendline support at around $168.00. A further breakdown from those levels could lead to a test of reaction lows and Fibonacci support at around $146.33, although that seems less likely to occur.

The Bottom Line

Roku shares rose nearly 2% during Monday's session after the company launched a new lineup of streaming devices in the United States. The move follows a deal with Comcast to offer its Peacock streaming service to subscribers. Traders should watch for a continuation of Roku stock's rising price channel.

The author holds no position in the stock(s) mentioned except through passively managed index funds.

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