Roku Inc. ROKU shares were trading lower Wednesday after Morgan Stanley maintained an Underweight rating on the stock and lowered its price target from $295 to $190. 

Roku was down 8.38% at $202.98 Wednesday afternoon. 

Roku Daily Chart Analysis

• Shares recently broke support in a sideways channel. Support in this channel was found near the $240 level, while the stock has held as resistance near the $480 level. If the price stays below the $240 level this area could become an area of resistance in the future.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been trending lower the last few days and now sits at 33 on the indicator. This shows that sellers are winning the battle in the stock and the pressure of selling outweighs the buying pressure strongly.

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What’s Next For Roku?

Roku recently fell below the $240 level that was holding as support. Bulls need to see the price recover back above this level for the stock to possibly keep trading within the channel. Bears are looking to see the level become an area of resistance, which would show that the stock is likely ready to see a further bearish push in the future.