Rocket Companies (RKT) Falls 13.67% on Bearish Technical Signals as Key Support Levels Emerge at $17.05 and $15.40

Rocket Companies (RKT) experienced a significant 13.67% decline in its most recent session, closing at $17.93. This sharp drop aligns with a broader bearish trend evident in the 50-day, 100-day, and 200-day moving averages, which have been sloping downward for months, indicating sustained selling pressure. The 50-day MA currently sits below the 200-day MA, reinforcing a bearish crossover signal. The price action forms a bearish engulfing pattern on the daily chart, with the long lower wick and short upper wick suggesting a strong rejection of higher prices. Key support levels are emerging around $17.05 (a prior low from January 30) and $15.40 (a Fibonacci 61.8% retracement level from the January 2026 peak), while resistance is clustered near $20.77 (a recent swing high).

Candlestick Theory

The recent session’s bearish engulfing pattern, combined with a prior sequence of lower highs and lower lows, suggests a continuation of the downtrend. A potential short-term bounce may test the $17.05 support level, but failure to hold this could trigger a retest of the $15.40 Fibonacci level.

Moving Average Theory

The 50-day MA (calculated at ~$18.50) and 200-day MA (~$19.20) are both below the current price, confirming a medium-term downtrend. The 100-day MA (~$18.80) adds confluence, with all three indicators forming a “death cross” formation. Traders may monitor a potential break below $17.05 to confirm a deeper bearish bias.

MACD & KDJ Indicators

The MACD histogram has been negative and expanding since early January 2026, reflecting deteriorating momentum. The KDJ (Stochastic) indicator shows the %K line at 12.3% and %D at 18.7%, indicating oversold conditions. However, a divergence exists between the KDJ and RSI (discussed below), as the KDJ’s oversold reading has not yet triggered a reversal, suggesting further downside potential.

Bollinger Bands

Volatility has spiked, with the 20-period Bollinger Bands expanding significantly. The current price of $17.93 is near the lower band, indicating overextended weakness. A break below the lower band may signal a continuation of the downtrend, while a rebound above the $19.00 mid-band could hint at a temporary pause.

Volume-Price Relationship

Trading volume surged to $1.54 billion during the recent session, validating the sharp decline. However, volume has been declining in recent weeks, which may signal weakening bearish conviction. A divergence between price and volume could foreshadow a short-term reversal, but the current volume profile supports a continuation of the downtrend.

Relative Strength Index (RSI)

The RSI has collapsed to 21.3, firmly in oversold territory. While this may attract short-term buyers, the RSI’s lack of a bullish divergence (price lows without corresponding RSI lows) suggests the downtrend could persist. A close above 30 would be needed to alleviate oversold concerns, but this is unlikely without a significant reversal.

Fibonacci Retracement

From the January 2026 high of $24.36 to the recent low of $17.05, key Fibonacci levels at 38.2% ($19.76), 50% ($18.71), and 61.8% ($17.46) are critical. The current price is approaching the 61.8% level, which could act as a short-term support. A breakdown below this would target the $15.40 level.

Confluence and Divergences

Multiple indicators align on a bearish outlook: moving averages, Bollinger Bands, and the MACD all confirm a downtrend. However, divergences exist between the KDJ and RSI, which are in oversold territory but lack bullish momentum. This suggests the market may prioritize continuation over reversal in the near term.