Rocket Companies Drops 3.69% as Bearish Momentum Tests Key Support at 17.76

Rocket Companies (RKT) declined 3.69% to close at 17.76 in the latest session, reflecting ongoing bearish pressure after its recent peak. The following technical analysis synthesizes multiple indicators to evaluate the stock's position.
Candlestick Theory
Recent sessions exhibit bearish continuation patterns, with the price closing near session lows on August 18 and 20, confirming sustained selling pressure. Key support emerges at 17.69 (August 18 low), while resistance is evident near 18.50, a level that rejected price advances twice in the past week. The breakdown below the psychologically significant 18.00 level suggests bearish control.
Moving Average Theory
The 50-day moving average (approximated at 16.80) trades below the current price, supporting the intermediate uptrend. However, the price now sits below the 20-day dynamic support (near 18.00), signaling short-term weakness. The rising 100-day (approximately 15.50) and 200-day (approximately 14.20) moving averages maintain the long-term bullish structure. Death crosses are absent, but the loss of shorter-term averages implies consolidation risk.
MACD & KDJ Indicators
MACD displays a bearish crossover with the histogram in negative territory, confirming weakening momentum. KDJ readings show the %K line (approximately 35) crossing below %D (approximately 45), trending toward oversold territory but not yet extreme. This divergence from the overbought KDJ peak in early August reinforces near-term bearish momentum without indicating capitulation.
Bollinger Bands
Price has breached the lower Bollinger Band (approximately 17.50) after the bands contracted significantly in early August, indicating a volatility expansion to the downside. This breach often precedes continuation moves, though a sustained close below could signal oversold conditions. The bandwidth remains elevated, supporting ongoing directional volatility.
Volume-Price Relationship
Distribution is evident near the 19.62 peak (August 13 volume: 32.8M shares), contrasting with lighter volume during the current decline (August 20 volume: 14.5M shares). This divergence suggests waning selling intensity. However, the absence of accumulation volume during rebound attempts—notably on August 19’s 3.42% gain—undermines recovery credibility.
Relative Strength Index (RSI)
The 14-day RSI (estimated at 42) has retreated from overbought territory (>70 on August 13) but remains above oversold levels. Its failure to breach 30 during the current pullback aligns with a corrective rather than reversal pattern. Bearish momentum is dominant but not yet exhausted by traditional RSI thresholds.
Fibonacci Retracement
Applying Fib levels to the upswing from the January 2025 low (10.28) to August’s high (19.62), the 23.6% retracement aligns with the current support zone (17.83-17.76). A decisive break below exposes the 38.2% level (16.45), which converges with the 100-day moving average. The 50% retracement (14.95) remains a critical long-term defense area should weakness intensify.
Confluence and Divergence Observations
Confluence exists at 16.45 (Fibonacci 38.2% + 100-day MA), a strategic support zone. Bearish confluence dominates near-term, evidenced by MACD/KJD momentum deterioration and candlestick rejection at 18.50 resistance. Notable divergence appears between price and volume: lower selling volume during the latest leg down may foreshadow exhaustion. However, this lacks confirmation from oversold oscillators, warranting caution. The breach of Bollinger’s lower band alongside RSI’s neutrality may resolve through consolidation before directional resolution.
In summary, Rocket Companies exhibits near-term bearish bias within an intact longer-term uptrend. The 17.69-17.76 support zone is pivotal; failure here may accelerate declines toward 16.45 confluence support. Recovery would require reconquering 18.50 with volume confirmation, though current indicator alignment suggests this is probabilistically challenging in the immediate term.