Rocket Companies Stock Jumps 3.42% as Technicals Signal Bullish Reversal

Rocket Companies (RKT) closed at $18.44, gaining 3.42% in the most recent session, with trading volume reaching 17.65 million shares. This analysis synthesizes technical indicators to evaluate the stock’s trajectory.
Candlestick Theory
Recent price action reveals a bullish reversal signal. The session on August 18, 2025, formed a hammer candlestick (low: $17.69, close: $17.83) after a three-day decline, indicating rejection of lower prices. This was followed by a decisive green candle on August 19 (close: $18.44), suggesting potential upside momentum. Key resistance resides near $19.50–$19.65, the August 13 peak, while support rests at $17.70–$17.80, validated by multiple tests in mid-August. A breach above $19.65 could signal renewed bullish momentum.
Moving Average Theory
The 50-day moving average (MA) approximates $16.80, with the 100-day and 200-day MAs at $15.50 and $14.30, respectively. The current price trades above all three MAs, confirming a sustained uptrend. The 50-day MA recently crossed above the 200-day MA (a "golden cross" in late July), reinforcing long-term bullish bias. However, the gap between the price and the 50-day MA has narrowed, suggesting potential short-term consolidation before further gains.
MACD & KDJ Indicators
The MACD histogram transitioned to positive territory on August 19, signaling building upward momentum after a bearish crossover in mid-August. KDJ metrics concurrently exited oversold conditions: The %K line crossed above %D from sub-20 levels, implying short-term buying pressure. This confluence suggests waning downside momentum, though sustained bullish follow-through requires validation.
Bollinger Bands
Volatility expanded during the early August rally ($16.54 to $19.62) but contracted during the subsequent pullback, forming a "squeeze" by August 18. Price rebounded sharply from the lower band ($17.69), closing near the middle band ($18.10) on August 19. This indicates stabilization, but a definitive bullish signal would involve a close above the middle band and upper band expansion.
Volume-Price Relationship
Volume surged 49% on August 19 (17.65M shares) versus the prior session (11.89M), confirming the rebound’s legitimacy. Notably, the August 13 rally to $19.62 occurred on elevated volume (32.84M shares), underscoring institutional accumulation. Conversely, down days (e.g., August 14 and 18) saw lower volume, implying limited conviction in declines. This volume asymmetry supports underlying bullish sentiment.
Relative Strength Index (RSI)
The 14-day RSI rebounded to approximately 52 after dipping to 42 on August 18, exiting near-oversold territory. While neutral now, the RSI had reached overbought levels (>70) during the August peak, preceding the correction. Current positioning suggests balanced momentum, but a break above 60 could foreshadow further upside.
Fibonacci Retracement
Using the swing low of $14.50 (July 31) and swing high of $19.67 (August 13), the recent pullback to $17.69 aligned precisely with the 38.2% retracement level. This Fibonacci support held, catalyzing the current bounce. Confluence exists with the $17.70–$17.80 candlestick support zone, bolstering this level’s technical significance. Sustained trading above $18.45 (23.6% retracement) may propel a retest of the $19.67 high.
Confluence and Divergence
Confluence is evident at $17.70–$17.80, where Fibonacci retracement, candlestick support, and Bollinger Band rejection aligned to catalyze the rebound. Minor divergence occurred in mid-August when price notched a higher high ($19.67 vs. prior $18.48) while the RSI registered a lower high, warning of weakening momentum before the pullback. No significant divergences currently exist across oscillators, suggesting harmonized price action.
Probabilistically, RKT appears positioned for near-term upside, contingent upon holding $17.70. A confirmed break above $19.65 could extend the broader uptrend, though failure to surpass $18.50 may invite consolidation. Volume confirmation remains critical for sustainable gains.