Rocket Companies Jumps 4.40% As Technicals Signal Bullish Momentum

Candlestick Theory
Rocket Companies (RKT) closed at $13.77, up 4.40% in the latest session, forming a robust bullish candle after testing support near $13.21. This follows a Hammer pattern on 2025-06-17 ($13.19 low) and a Bullish Engulfing structure on 2025-06-11, indicating buyer conviction at lower levels. Immediate resistance is observed at $14.11–$14.22 (recent highs), while support converges at $13.21–$13.30 and the psychological $13.00 level. The price rejection from $10.41 in May solidified a major bottom, creating higher-timeframe support near $12.00.
Moving Average Theory
The 50-day moving average (~$13.60) now acts as dynamic support after the price reclaimed this level. However, the 100-day (~$14.50) and 200-day (~$15.80) MAs remain overhead resistances, reflecting persistent intermediate-term bearish pressure. The 50/200-day "death cross" formed in April remains technically valid, though recent consolidation above the 50-day suggests weakening downside momentum. A sustained move above $14.50 (100-day MA) is required to signal a potential trend reversal.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line attempting to flatten near the zero line. KDJ oscillators exited oversold territory (K=24.3, D=21.7 on 2025-06-17) and now read K=65.2, D=50.1, indicating strengthening short-term bullish momentum. While no confirmed bullish crossover exists yet, the recovery from oversold extremes aligns with recent price gains.
Bollinger Bands
Volatility contraction is evident as Bollinger Bands narrowed to a 13% width (compared to 22% in April), signaling reduced directional uncertainty. The price rebounded from the lower band ($13.00–$13.20 zone) and now challenges the middle band (~$13.90). A decisive break above $14.11 would position the upper band ($14.40–$14.60) as the next target. Band expansion here would confirm a directional impulse.
Volume-Price Relationship
Bullish volume confirmation is notable: the 4.40% surge on 2025-06-18 occurred on 12.9M shares (20% above 10-day avg), while preceding declines saw lower volume. The May rally from $10.41 climaxed with a spike of 40.2M shares, establishing high-conviction support near $12.00. Distribution appears absent near current levels, supporting upside sustainability.
Relative Strength Index (RSI)
The 14-day RSI rebounded from near-oversold (30.6 on 2025-06-11) to 53.8, neutralizing bearish pressure. While not yet overbought, its recovery trajectory aligns with price action. Divergence occurred on 2025-06-13 when RSI hit 36.2 despite higher lows in price – this foreshadowed the current rebound. Sustained trade above 55.0 would strengthen the recovery thesis.
Fibonacci Retracement
Using the March 2025 peak ($21.085) and June 2025 trough ($10.41), key retracements are:
- 38.2%: $13.26 (breached recently)
- 50%: $14.50 (confluent with 100-day MA)
- 61.8%: $15.73 (aligns with 200-day MA)
Current price action tests the 38.2% retracement ($13.26), with a close above $13.77 suggesting bullish continuation toward $14.50.
Confluence & Divergence
Significant confluence exists at $13.20–$13.30 (candlestick support, Bollinger lower band, Fibonacci 38.2%). Resistance at $14.11–$14.22 merges prior highs and Bollinger mid-band. Divergence is noted between MACD’s lingering bearish posture and strengthening KDJ/RSI, though this typically resolves through consolidation. Volume-backed recovery above $13.50 reduces near-term downside risk.
Conclusion
Rocket Companies displays emerging bullish momentum above key support at $13.20, validated by volume and oscillator recoveries. While broader downtrends persist above $14.50, the confluence of indicators suggests a tradable upside toward $14.11–$14.22 resistance. A break above $14.50 with volume would signal a higher-probability trend reversal. Downside risk remains should $13.00 fail to hold.