Rocket Companies Stock Plunges 5.13% as Bearish Indicators Signal Further Downside

Rocket Companies (RKT) declined 5.13% in the most recent session, extending its losing streak to two consecutive days with a cumulative drop of 7.28%. The technical analysis below evaluates key indicators to assess the stock’s current trajectory.
Candlestick Theory
Recent candlesticks exhibit a bearish pattern, with the latest session forming a long red candle closing near its low of $13.46 after testing resistance near $14.05. This follows a failed recovery attempt at the $15.18 peak on 2025-06-02, establishing that level as significant resistance. Immediate support is observed at $13.46 (recent intraday low), with stronger support near the May trough of $11.08. The breach below $14.00 confirms selling pressure, while a sustained close below $13.46 may trigger further downside.
Moving Average Theory
The stock trades below all key moving averages, signaling bearish momentum. The 50-day SMA (approximately $14.00) crossed below the 100-day SMA (near $14.20) in late June, reinforcing intermediate-term weakness. More critically, the 200-day SMA (around $14.80) caps rallies, maintaining a long-term downtrend. This alignment suggests sustained selling pressure, with any recovery likely to face resistance near the clustered SMAs at $14.00–14.20.
MACD & KDJ Indicators
The MACD histogram remains in negative territory, with the signal line consistently above the MACD line since mid-June, confirming bearish momentum. Concurrently, the KDJ oscillator shows %K and %D lines near oversold levels (both near 20) but without bullish crossovers. While this suggests potential exhaustion, the absence of upward inflection implies ongoing downside risk. The divergence between oversold KDJ readings and persistent MACD bearishness warrants caution against premature reversal calls.
Bollinger Bands
Bollinger Bands have expanded noticeably during the recent decline, reflecting rising volatility. The price currently hugs the lower band near $13.50, indicating oversold conditions, but without decisive rejection. A sustained break below the lower band could accelerate selling, whereas a reversion toward the 20-day SMA (mid-band) near $14.15 may signal consolidation. The expansion-contraction cycle suggests volatility is likely to persist.
Volume-Price Relationship
Volume surged to 19.6 million shares during the latest sell-off, exceeding the 20-day average and confirming bearish conviction. This distribution pattern aligns with prior high-volume down days, such as the 24.8 million shares traded during the June 25 decline. Conversely, volume on up days has been lackluster, undermining recovery sustainability. Elevated volume during breaks below support reinforces the validity of the downtrend.
Relative Strength Index (RSI)
The 14-day RSI reads 31, nearing oversold territory (<30) but not yet extreme. This reflects seven down days in the last ten sessions, driving average losses higher than gains. While the RSI suggests potential exhaustion, its failure to reach deeply oversold levels amid persistent declines implies underlying weakness. Traders should monitor for bullish divergence, though none is currently evident.
Fibonacci Retracement
Using the April–June swing from $11.08 (May low) to $15.18 (June high), retracement levels are: 23.6% ($14.21), 38.2% ($13.61), and 50% ($13.13). The breach below 38.2% support at $13.61 validates bearish momentum, with the 50% level at $13.13 becoming the next target. This retracement deepens the correction narrative, with a close below $13.13 potentially opening the path to the 61.8% level at $12.65.
Confluence and Divergences
Confluence is evident between Fibonacci retracement (breach of 38.2%), volume-supported breakdown, and moving average resistance, collectively reinforcing bearish bias. Minor divergence appears in oversold KDJ/RSI readings against MACD’s unwavering downtrend, suggesting potential short-term consolidation but not a reversal signal. The lack of bullish confirmation across indicators implies downward pressure remains dominant.
Conclusion
Rocket Companies exhibits bearish technical structure, with indicators converging toward downside continuation targeting $13.13–13.00. While oversold readings hint at potential consolidation or a tactical bounce, sustained recovery would require reconquering $13.61 (38.2% Fibonacci) and $14.05 (recent resistance) on high volume—neither yet evidenced. Traders should monitor $13.46 for breakdown confirmation or reversal catalysts near key supports.