Roku (ROKU - Get Report) stock put together a blistering move, rallying 9.2% to $117.90 Wednesday.

Is that it? Do investors have the all-clear to own Roku stock now? Not necessarily, although the action is promising for the bulls.

Roku reported much better-than-expected earnings in August. However, perhaps not so much better that it justified a rally from about $100 to roughly $175 in one month's time. A 75% one-month rally is pretty absurd to begin with, let alone considering that Roku stock was trading below $30 in December.

The action last month was nothing short of over-exuberance, no matter how great a company Roku is. When shares were recently trading near $105, Roku was down about 40% from its highs in September. 

Trading Roku Stock

Daily chart of Roku stock.
Daily chart of Roku stock.

After its 40% decline, Roku stock has hit the "reset" button, but that doesn't mean it's out of the woods.

While Roku stock put together a really nice bottom near the $100 level in the last few weeks of September and in the beginning of October, it may have done investors good for a flush below the triple-digit mark.

For instance, a decline down to the 200-day moving average near $85 would have washed out all of the weak hands that bought into Roku stock late. Instead, the $100 mark held and now shares were putting together a strong rally on Wednesday.

The latest push is thanks to analysts at Macquarie, who upped their price target to $130 from $110, arguing that users could double or even triple in the next few years.

Whether investors believe that or not, the price-target hike was a good enough excuse to justify bidding up Roku stock on a day where equities are trading well thanks to positive trade talk.

In any regard, let's see what Roku does from here. Can shares push higher, through the $120 mark?

That's the post-earnings gap-up level from August, as well as the 38.2% retracement and the backside of prior uptrend support (blue line). Above this mark, and the 50-day moving average near $128 is on the table. Above that and the 23.6% near $141 is possible.

If Roku stock struggles with resistance, let's see if the 50% retracement near $101 and the recent low at $98 holds as support. If they fail, a test of the 200-day moving average may come to fruition.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.