Roku (ROKU) shares are trading significantly higher Wednesday after the company and Alphabet Inc. (GOOGL) agreed on a multi-year deal extension for YouTube. This deal allows Roku customers to continue watching YouTube and YouTube TV on the Roku platform. Roku was up 14.94% at $248.95 at press time.

Roku Daily Chart Analysis

• Shares jumped and look to reclaim support in a sideways channel.
• The stock is showing resistance near the $480 level as this is an area where the stock has been unable to cross above. Previous resistance was found near the $240 level, but since the price is above this area, it may hold as an area of support.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
• Each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) saw a large jump higher Wednesday and sits at 50. This shows a large amount of buyers entered into the stock and now buying and selling pressure has equaled out.

What’s Next for Roku?

Bullish traders want to see the stock be able to hold above the $240 level and to start forming higher lows. Bulls are then looking for the stock to work its way up to resistance and eventually be able to cross above the level.

Bears want to see the stock fall back below the $240 level and begin to hold it as resistance. If this level begins to hold as resistance, it may show the stock is ready for a strong bearish push in the future.