Roku Inc (ROKU) stock plummeted 8.03% in Wednesday's trading session, raising concerns among investors about the streaming platform's ability to sustain its growth trajectory.

The sharp decline could be attributed to technical weaknesses observed in Roku's previous base pattern formation before a significant price rise in 2021. According to chart analysis:

• Roku had formed a deep base with a 44% decline, exceeding the typical 30% maximum depth for a healthy base.
• The base exhibited "wide and loose" price action, with weekly swings of over 20%, indicating market uncertainty and volatility.
• Most of the base formation occurred below the 10-week moving average line, a sign of underlying weakness.
• High-volume weeks were primarily on the downside, suggesting a lack of institutional demand during the consolidation phase.

These chart pattern flaws, identified before Roku's previous breakout, could be raising concerns among investors about the stock's ability to maintain its momentum, potentially contributing to the recent plummet.