I am viewing that ROKU is in final days of wave 3 that started in March 2020. The wave 3 has extended just several points over the 1.618 level off the all time low (blue fibs), and, at the same time, it approaches the 3.0 fibs level off the March low (green fibs). If I measure the sub-waves, the wave v of 3 approaches 2.272 level off the October low (purple fibs). From the fibs perspective I would be willing to accept another minor advance to about 341. From the channel perspective, wave 3 has pierced through the upper boundary of the all time long channel and is expected to return back.
Once the stock reverses, I estimate that wave 4 would be developing for about half a year until it hits the bottom of the all time channel. Possible shape – a flat or triangle, wave 2 was a zigzag.
Some preliminary targets for this correction would be the following:
1. Wave A of 4 could target 200 and drop similarly to wave v of 1 – both waves have almost identical narrowing channels, hinting about a possible non-overlapping diagonal;
2. Wave 4 could retrace to:
– 219 – 1.0 fibs off the all time low;
– 233-275 – 0.236-0.382 retrace of wave 3 (green rectangle);
– 195-239 – area of wave iv of a lesser degree (blue rectangle).
A very preliminary target for wave 5 – 380-424 – that could be achieved in more that 12 months.