Rocket Companies Extends Rally 11.06% On Golden Cross Bullish Signal

Rocket Companies (RKT) concluded the latest session at $14.16, marking a 3.43% gain and extending its winning streak to three consecutive days with a cumulative 11.06% advance.
Candlestick Theory
Recent sessions display three consecutive white candles with higher highs and higher lows, forming a bullish "Three White Soldiers" pattern signaling strong upward momentum. Key resistance is evident near $14.22 (June 12 high) and $14.30–$14.40 (a prior swing high zone from early May). Support emerges at $13.53 (June 12 low) and $13.26 (June 11 low), reinforced by the psychological $13.00 level. A close above $14.40 could trigger further upside, while failure to hold $13.26 may signal near-term exhaustion.
Moving Average Theory
The 50-day moving average ($12.80) has recently crossed above the 200-day MA ($15.24), forming a "golden cross" — a potential long-term bullish signal. The 100-day MA ($13.50) now acts as dynamic support. However, the current price ($14.16) remains below the declining 200-day MA, indicating persistent long-term resistance. Short-term momentum is bullish as price trades above all key MAs except the 200-day, suggesting bullish bias near-term but caution at longer timeframes.
MACD & KDJ Indicators
The MACD (12,26,9) shows a sustained positive histogram since late May, confirming bullish momentum acceleration. Both MACD lines are above the signal line and rising. The KDJ oscillator (14-period) has K-line (86) and D-line (81) in overbought territory (>80), while J-line (96) suggests extreme overbought conditions. This implies near-term consolidation risk. Divergence is absent, but overbought KDJ readings warrant vigilance for a pullback despite bullish MACD alignment.
Bollinger Bands
Bands have expanded notably during the current rally (20-day Band Width reading rising), indicating increasing volatility. Price is testing the upper band ($14.20), often a short-term resistance zone. The breakout from a prior contraction (squeeze) in late May preceded the strong upward move. Close monitoring is needed to see if price sustains above the upper band (bullish continuation) or retreats toward the middle band/SMA ($13.50 support).
Volume-Price Relationship
The rally witnessed substantial volume expansion on June 11 (15.16M shares) and June 5 (23.49M shares), validating bullish conviction. However, the latest session (15.13M shares) showed marginally lower volume compared to June 11 despite a similar price gain, hinting at possible near-term exhaustion. The absence of volume divergence remains broadly supportive, but diminishing volume on further gains would raise sustainability concerns. Key support breaks must occur on lower volume to retain bullish structure.
Relative Strength Index (RSI)
The 14-day RSI (64.3) is rising but remains below overbought (70) territory. Momentum is strengthening without being extreme. Notably, the RSI avoided overbought conditions during this rally, reducing immediate reversal risk. Prior tests near 70 (April, May) preceded pullbacks, making RSI near 70 a warning zone. Current readings support continuation potential, though proximity to 70 warrants caution.
Fibonacci Retracement
Using the significant decline peak ($19.31 on March 6, 2025) to trough ($11.11 on May 9, 2025):
- The 38.2% retracement sits at $14.42.
- The 50% retracement is at $15.21 (aligning closely with the 200-day MA).
- The 61.8% retracement lies at $16.00.
The recent rally stalled near the 38.2% level ($14.22). A decisive break above $14.42 may target $15.21. This zone ($15.21–15.40) represents a critical confluence of Fibonacci, moving average, and prior price resistance (April highs).
Confluence and Divergence Summary
Strong confluence exists at $15.21–$15.40 (200-day MA + 50% Fibonacci + April 4 high), representing the primary technical barrier. Bullish agreement appears via the MACD uptrend, golden cross formation, and volume-backed price action. The KDJ overbought signal and weakening volume on the latest up day provide mild divergence, suggesting near-term consolidation. Overall, while momentum favors further upside, key resistance near $14.40 (Fib 38.2%) and especially $15.21–$15.40 must be overcome to signal a sustained reversal. Probabilistically, failure near $15.20 appears more likely than immediate breakthrough given long-term trend resistance.