Rocket Companies Shares Plunge 3.78% on $210M Volume Ranking 437th as Bearish Momentum Deepens

Rocket Companies (RKT) closed down 3.78% on August 18, 2025, with a trading volume of $210 million, ranking 437th in market activity that day. The stock has been pressured by bearish technical signals across multiple indicators, with price testing critical support levels below $17.50.

Technical analysis reveals deteriorating momentum as RKT’s 50-day moving average ($16.80) crossed below the 100-day ($17.20) in late July, reinforcing a bearish bias. Price remains below all key moving averages, with the 200-day ($15.50) offering distant support. Fibonacci retracement levels suggest $16.56 as a potential target if the $16.80 threshold is breached.

Candlestick patterns indicate distribution near $19.50 resistance, with consecutive bearish closes including an 8.17% decline on August 14 and a 3.78% drop on August 18. Bollinger Bands analysis shows RKT trading near the lower band at $17.83, signaling oversold conditions but weak buying interest. MACD remains negative, while KDJ indicators (15/20/5) suggest unresolved downward pressure despite oversold readings.

Volume patterns highlight distribution risk, with the August 14 sell-off occurring on 22.2 million shares—double the 30-day average. Recent weakness on lower volume (11.8 million shares on August 18) raises questions about conviction in the decline. RSI at 32 approaches oversold territory but has failed to sustain above 50 since May, indicating entrenched bearish momentum.

Backtesting of a high-volume trading strategy from 2022 to 2025 shows a compound annual growth rate of 6.98%, with a maximum drawdown of 15.46% recorded in mid-2023. While the strategy demonstrated steady growth, the drawdown underscores the risks associated with volume-driven approaches during volatile market conditions.