Roku Stock – FuboTV Looks Ready for a Recovery Rally
During Wednesday’s fast-paced Lightning Round segment of Mad Money, one caller asked Jim Cramer about fuboTV FUBO: “This was a problematic quarter. I don’t have as much faith in this business as I do with Roku (ROKU) “, responded Cramer.
(For more, see I Love the Growth in FuboTV: Here’s My Trade Idea)
In this daily bar chart of FUBO, below, we can see that prices peaked back in December and January, and then proceeded to give back most of the gains from October. Prices are trading below the declining 50-day moving average line and the cresting 200-day line. The 50-day line is ready to cross below the 200-day line for a belated dead or death cross. This is a math driven sell signal that is typically late.
The On-Balance-Volume (OBV) line made a low in late January and has held up very well and suggests that there has been a considerable amount of scale down buying.
The Moving Average Convergence Divergence (MACD) oscillator hit bottom in April with a cover shorts buy signal and now shows us a bullish divergence with a higher low on the indicator as prices made a lower low this month.
In this weekly Japanese candlestick chart of FUBO, below, we are finding a “turnaround” situation. Prices have declined the past few months and are trading below the 40-week moving average line. FUBO is retesting the top end of a $15-$5 base pattern. The latest candle shows a lower shadow as traders have so far rejected the lows of the week.
The weekly OBV line shows a bullish trend and the MACD oscillator is narrowing towards a bullish crossover in the weeks ahead.
In this daily Point and Figure chart of FUBO, below, we can see a potential upside price target in the $33-$34 area.
Get an email alert each time I write an article for Real Money. Click the “+Follow” next to my byline to this article.