Rocket Lab Extends Rally With 26% Gain Over Six Sessions As Technicals Flash Bullish Signals

Rocket Lab (RKLB) surged 4.17% in the latest session, extending its winning streak to six consecutive days with a cumulative gain of 26.46% during this period.
Candlestick Theory
The recent price action shows six consecutive bullish candles with progressively higher highs and lows, confirming strong upward momentum. The latest candle closed near its high ($58.5) after testing intraday support at $55.8, indicating sustained buying pressure. Resistance is now evident at $59.26 (today’s high), while immediate support forms at $56.16 (previous close) with secondary support at $52.47. The absence of reversal patterns like dojis or shooting stars suggests bullish continuity.
Moving Average Theory
Rocket Lab’s price trades decisively above all key moving averages, signaling a robust uptrend. The 50-day SMA (estimated near $45) crossed above the 100-day and 200-day SMAs several weeks ago, establishing a "golden cross" configuration. The ascending slope of the 200-day SMA (approximating $35) confirms a long-term bullish bias. Current price deviations are extreme, potentially prompting mean reversion.
MACD & KDJ Indicators
The MACD histogram remains positive with the MACD line above its signal line, reinforcing bullish momentum. However, the KDJ oscillator (likely >80 for %K and %D) shows sustained overbought conditions across the six-day rally. While no bearish crossover is evident, such extreme KDJ readings historically precede short-term consolidations.
Bollinger Bands
Price consistently trades near the upper Bollinger Band, reflecting high volatility and strong upward thrust. Bandwidth expansion during the rally confirms trending behavior. The current proximity to the upper band ($60-61, estimated) signals overbought territory but does not yet show contraction that would warn of volatility collapse. Reversion toward the 20-period midline (~$53) remains possible.
Volume-Price Relationship
Volume surged 30-50% above average during the initial breakout days (October 2-3), validating the rally’s legitimacy. The latest session’s volume, while lower than peak levels, remains elevated—supporting price sustainability. No distribution patterns (e.g., high volume on down days) are evident, though weakening volume on extended rallies could signal exhaustion.
Relative Strength Index (RSI)
The 14-day RSI (estimated >75) resides in overbought territory. While readings above 70 typically warn of overheating, RSI can remain elevated in strong trends. The absence of bearish divergence (RSI peaks align with price highs) suggests momentum persistence, though pullback risks intensify near extremes.
Fibonacci Retracement
Applying Fibonacci to the swing low of $42.99 (September 4, 2025) and the current high of $59.26 identifies key retracement levels: 23.6% ($55.42), 38.2% ($53.05), and 50% ($51.13). Confluence exists near $55.40–55.80, aligning with today’s low and the psychological $55 support. A pullback to this zone could attract buyers.
Confluence and Divergence Observations
Confluence is pronounced at $55.42–55.80 (Fibonacci 23.6%, prior resistance, and today’s low), making it a critical support. Volume validation and moving average alignment reinforce the primary uptrend. Divergence is absent between price and momentum oscillators (RSI, MACD), though KDJ’s persistent overbought state juxtaposes Bollinger Band warnings about extended volatility. These conditions collectively suggest continued bullish bias with heightened risk of consolidation near $59.26 resistance. A close below $55.80 would signal a potential short-term reversal.