Rocket Companies Extends Slide With 3.9% Drop As Technicals Signal Bearish Momentum

Rocket Companies (RKT) closed at $13.195 on June 17, 2025, marking a 3.90% decline and extending its losing streak to three consecutive sessions with a cumulative 6.81% drop. The stock exhibits technical vulnerability, with key indicators signaling bearish momentum but nearing potential support zones, as detailed in the following multi-indicator assessment.
Candlestick Theory
The three-day downtrend manifests as a sequence of lower highs and lower lows, establishing $14.22 (June 12 high) as immediate resistance. The absence of reversal patterns (e.g., hammers or bullish engulfing) reinforces bearish control. Critical support emerges near $13.00–$13.10, where price consolidated in early June, with failure opening the path to $12.45–$12.60, aligning with the May 20–29 base.
Moving Average Theory
The 50-day SMA (~$13.40) recently crossed below the 100-day SMA (~$13.70), confirming intermediate-term bearish momentum. Price now trades below all key SMAs (50/100/200-day), with the 200-day SMA (~$14.00) acting as robust overhead resistance. The death cross formation suggests sustained downward pressure, though proximity to the 50-day SMA may offer initial stabilisation potential.
MACD & KDJ Indicators
MACD remains in negative territory below its signal line, reflecting bearish momentum acceleration. KDJ shows %K (15) and %D (20) in oversold zones, diverging mildly as price hits lower lows while stochastic levels stabilize. This hints at potential exhaustion, though no bullish crossover is yet evident. Both oscillators align in signaling near-term downside bias but flag overextended conditions.
Bollinger Bands
A pronounced band contraction (June 1–10) preceded the breakdown below the 20-day moving average ($13.50). Price now hugs the lower Bollinger Band (~$13.00), signaling oversold conditions. However, expanding bandwidth and sustained closes below the lower band underscore active bearish momentum, requiring a reclaim of the midline ($13.60) to stabilize.
Volume-Price Relationship
Downside volume (9–11M shares) during the three-day decline trails the 15M+ surges on June 11–12 advances, suggesting limited conviction in the selloff. This divergence may foreshadow exhaustion. Conversely, the absence of accumulation on rebound attempts underscores weak demand, requiring volume expansion >12M shares to confirm reversal signals.
Relative Strength Index
The 14-day RSI (~37) edges toward oversold territory but lacks extremes (<30) that typically precede reversals. Its downward slope aligns with the price trajectory, showing no bullish divergence. While not deeply oversold, further weakness to $12.60–$12.70 could trigger RSI sub-30 readings, elevating reversal potential.
Fibonacci Retracement
Measuring the rally from the January 13 low ($10.06) to the June 12 high ($14.22), the 23.6% retracement ($13.24) has been breached. Next support aligns at the 38.2% level ($12.63), intersecting with the June 9 low ($12.45). This confluence strengthens $12.45–$12.65 as a high-probability stabilisation zone. A deeper retracement to 50% ($12.14) remains plausible should macro pressure persist.
Confluence and Divergences
Notable confluence exists at $12.60–$12.70, where Fibonacci, swing-low, and Bollinger Band supports converge, potentially halting the downtrend. However, bearish alignment dominates: MACD, RSI, and SMA structures collectively validate downside momentum. A key divergence lies in KDJ’s oversold signal amid neutral RSI readings, reflecting fragmented momentum signals but insufficient to override broader bearishness. Reclaiming $13.50 (100-day SMA) is essential to invalidate immediate downside targets.