Rocket Lab Surges 22% In 3 Days As Technicals Signal Strong Bullish Momentum

Rocket Lab (RKLB) concluded the most recent session with a 6.93% gain, marking its third consecutive day of advances and a cumulative 22.19% rally over this period, reflecting robust bullish momentum driven by significant investor interest.
Candlestick Theory
The price action reveals a decisive breakout pattern, with the last three sessions forming a bullish trio characterized by higher highs and higher lows. The 2025-07-14 candle (10.71% gain) established key support at $38.77, while the subsequent two up-days confirmed this floor. Resistance is now consolidating near the $48.07 swing high printed on 2025-07-16, aligning with the psychological $50 threshold. A close above $48.07 may signal extended upside, while failure to hold $44.86 could indicate near-term exhaustion.
Moving Average Theory
Short-term momentum remains strongly bullish, with the current price ($47.69) trading well above the 50-day EMA ($32.81) and 100-day EMA ($30.25). The 200-day EMA ($23.18) confirms the primary uptrend’s integrity. All three moving averages exhibit upward slopes with no bearish crossovers, indicating sustained intermediate to long-term buying pressure. The expanding gap between the 50-day and longer-period EMAs reinforces accelerating bullish sentiment.
MACD & KDJ Indicators
The MACD histogram shows widening bullish momentum above its signal line, supporting the short-term uptrend. Concurrently, KDJ readings signal overbought conditions, with the K-line (92) and D-line (88) approaching extremes. While this divergence does not yet indicate reversal, it warrants vigilance for potential consolidation. The J-line’s extended position (100) further amplifies overbought signals, though strong trends can sustain elevated readings.
Bollinger Bands
Volatility expansion is evident as price breaches the upper band ($46.20) on 2025-07-16, suggesting continuation strength. The bands widened notably during the rally, contrasting with the contraction observed in early July. Sustained trading above the upper band, while unusual beyond two sessions, currently reflects powerful bullish conviction, with the middle band ($40.85) now acting as dynamic support.
Volume-Price Relationship
Volume surged during the three-day rally (29.0M→26.6M shares), validating the breakout’s legitimacy. The steady increase in volume magnitude alongside ascending prices demonstrates robust accumulation. However, the slight volume decline on the third day relative to the prior two sessions may foreshadow near-term consolidation unless follow-through buying materializes.
Relative Strength Index (RSI)
The 14-day RSI (76) resides in overbought territory, historically a precursor to minor pullbacks during Rocket Lab’s trends. While concerning in isolation, its alignment with strong volume and moving average support suggests pullbacks could remain shallow. Traders should monitor for bearish divergence—specifically if prices make new highs with declining RSI—to gauge sustainability.
Fibonacci Retracement
Drawing retracement levels from the swing low of $25.41 (2025-06-13) to the recent high of $47.69 reveals critical thresholds: 38.2% ($39.50), 50% ($36.55), and 61.8% ($33.60). The current price consolidation near the 0% extension coincides with the psychological $50 resistance. A decisive break above could target the 127.2% extension at $53.75. The 38.2% retracement level ($39.50) now serves as major support, closely aligned with the 50-day EMA.
Confluence and Divergence
Confluence is observed between Bollinger Band resistance ($46.20), the psychological $50 level, and Fibonacci 0% extension, amplifying the significance of this resistance zone. Conversely, KDJ/RSI overbought readings diverge from sustained bullish momentum in MACD and moving averages. This suggests near-term consolidation or shallow pullback risks, though structural supports ($44.86 candlestick support, $39.50 Fib/50-day EMA) remain robust. Volume validation during the rally mitigates immediate reversal concerns despite oscillator warnings.