Rocket Companies Stock Soars 12% On Heavy Volume As Technicals Turn Bullish

Rocket Companies (RKT) concluded the most recent session on August 1, 2025, with a notable 11.98% surge, marking the second consecutive day of gains and bringing the two-day advance to 12.82%. The stock closed at $16.54 after trading between $15.83 and $17.23, accompanied by significantly elevated volume of 55.9 million shares. This analysis examines technical dynamics using the specified framework.
Candlestick Theory
Recent price action reveals a bullish reversal pattern. The July 31 hammer candle (low: $14.50, close: $14.77) followed a downtrend, signaling potential exhaustion of selling pressure. This was confirmed by the August 1 bullish marubozu (open near $15.83, close near high of $17.23) which exhibited strong buying conviction. Key resistance now emerges at the June 24 swing high of $15.06, surpassed during the rally, while support consolidates near the July 31 low of $14.50. The $17.23 peak represents immediate overhead resistance, with a sustained break above potentially extending gains.
Moving Average Theory
The 50-day moving average ($14.82) recently crossed above the 100-day ($13.95), generating a bullish signal. The August 1 close at $16.54 positions price firmly above all three key moving averages (50D/100D/200D), confirming a strengthening intermediate uptrend. Significantly, the 200-day moving average ($13.60) has shifted upward after seven months of flatlining, indicating improving long-term momentum. The convergence of price trading above ascending short- and long-term averages reinforces positive trend alignment.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover above the signal line, with the histogram expanding positively since July 21. This momentum acceleration aligns with KDJ readings, where the %K line (86) has surged above the %D line (78) in overbought territory. While KDJ's extreme reading suggests near-term consolidation risk, the MACD's upward trajectory indicates underlying strength. A notable bullish divergence occurred in late July when price formed a higher low ($14.50) while KDJ printed a higher low in neutral territory, foreshadowing the current advance.
Bollinger Bands
August 1’s price closed near the upper band ($16.98), reflecting strong upside momentum after bands contracted markedly in mid-July (bandwidth at 6-month low), signaling the volatility compression that preceded the breakout. The expansion phase initiated on July 22 remains active, supporting continuation potential. Sustained trading near the upper boundary implies overbought conditions, though such extensions can persist during strong trends.
Volume-Price Relationship
The current rally is validated by substantial volume amplification. August 1’s volume (55.9M shares) doubled the 20-day average and marked the highest level since April’s sell-off. This accumulation signature contrasts with the July 24 decline (-8.33%), which occurred on elevated volume (40.6M shares), indicating capitulation. The subsequent rebound on increasing volume demonstrates robust demand, supporting trend sustainability.
Relative Strength Index
The 14-day RSI reads 74, entering overbought territory for the first time since April. While this warrants caution for pullbacks, its bullish implications are amplified by two factors: 1) the breakout from a 4-month consolidation range, and 2) RSI’s higher high aligning with price’s higher high. Historically, RKT has sustained overbought readings for extended periods during strong impulses (e.g., March-April 2025).
Fibonacci Retracement
Applying Fibonacci levels to the March 31 ($12.07) to April 4 ($15.40) rally identifies critical retracement thresholds. The recent bounce originated near the 61.8% retracement at $14.70, which now serves as key support. The 38.2% level at $15.40 aligns with the July 23 high and former resistance, now acting as support. Extension targets include the 138.2% level at $16.86, nearly tested on August 1, and the 161.8% level at $17.28.
Confluence & Divergence Observations
Confluence appears at $15.40, where Fibonacci, the 50-day moving average, and July’s resistance converge as support. The volume-backed breakout above this level enhances its significance. A minor divergence exists in RSI’s overbought reading against otherwise bullish momentum indicators, suggesting short-term consolidation may precede further upside. However, the alignment of moving average crossovers, MACD expansion, and volume conviction favors continuation above $16.00 once overextended conditions ease.