Rocket Companies Rebounds 4.20% As Technicals Signal Bullish Reversal

Rocket Companies (RKT) rose 4.20% to close at $17.88 on the most recent session, rebounding from an intraday low of $17.15 after a 3.43% decline the previous day. Over the past year, the stock has navigated significant volatility, ranging from a low near $10.06 in January 2025 to a peak of $21.38 in September 2024. The following technical analysis synthesizes seven key methodologies to evaluate the current technical posture.
Candlestick Theory
Recent price action shows a bullish reversal pattern emerging. The August 22nd session formed a long bullish candle (9.27% gain on high volume), followed by consolidation that established support near $16.50 in late August. The September 3rd bullish candle closed near its high ($17.88), rejecting the $17.15 support level. Resistance is evident near $18.50, where multiple August rally attempts failed. A confirmed break above this zone would signal bullish continuation.
Moving Average Theory
The 50-day moving average (near $17.60) crossed above the 100-day MA (∼$16.80) in August, supporting a short-term bullish bias. However, the 200-day MA at $15.40 remains below both, reflecting longer-term bearish pressure. Recent price action found support at the 100-day MA after failing to sustain above the 50-day MA, suggesting consolidation. A golden cross formation would require the 50-day MA to surpass the 200-day MA – currently not evident.
MACD & KDJ Indicators
The MACD histogram shows diminishing bearish momentum, with the signal line nearing a bullish crossover. This aligns with KDJ indicators, where the %K line (16) recently crossed above the %D line (12) from oversold territory. However, both oscillators remain below neutral levels (KDJ at 28, MACD histogram negative), suggesting tentative rather than robust momentum. The August 22nd peak at $19.21 showed bearish divergence as MACD failed to confirm the price high.
Bollinger Bands
Bollinger Bands (20-day, 2σ) contracted significantly in late August, indicating reduced volatility before the recent breakout attempt. The September 3rd close pushed above the mid-Bollinger Band ($17.70), challenging the upper band ($18.30). A sustained break above $18.30 would confirm bullish bias, while contraction below $17.15 (lower band) would indicate renewed bearish pressure. Current expansion signals increased directional conviction.
Volume-Price Relationship
Key rallies were validated by volume surges: August 13th (+7.39% on 32.8M shares) and August 22nd (+9.27% on 30.2M shares). Recent gains on September 3rd (17.7M shares vs. 30-day avg ∼18M) show moderate volume support. Conversely, the August 27th breakdown (-4.54% on 23.6M shares) reflected distribution. Volume trends suggest conviction exists for upside moves but wanes during pullbacks, indicating fragile sentiment.
Relative Strength Index
The 14-day RSI (55) has recovered from oversold conditions (<30) in late July but remains below overbought territory. Current levels reflect neutral momentum, though the sharp rise from 40 to 55 in three sessions suggests accelerating buying pressure. Notably, the August high ($19.21) formed a bearish divergence as RSI peaked at 68 – lower than July’s 75 reading despite higher prices. This warning signal preceded September’s correction.
Fibonacci Retracement
Applying Fibonacci to the dominant trend decline (September 2024 high of $21.38 to January 2025 low of $10.06), critical levels emerge. The 61.8% retracement ($16.54) supported the late July and early August consolidation. The 78.6% level ($17.72) was breached intraday on September 3rd – a sustained close above this threshold would target the full retracement at $21.38. Current price action tests this key Fibonacci resistance with $16.50 as major support.
Confluence and Divergences
Confluence appears at $17.70–17.80, where the 78.6% Fibonacci level, mid-Bollinger Band, and 50-day MA converge. A confirmed break above this zone would align with bullish candlestick patterns and RSI momentum. Divergence remains a concern, as MACD and RSI failed to confirm the August peak. Volume-supported breakouts above $18.50 would strengthen the bull case, while failure to hold $17.20 could trigger retests of $16.50 support. The technical framework suggests a cautiously bullish bias pending confirmation above key resistance, with probabilistic upside toward $19.00 if volume and momentum align.