Technical AnalysisRocket Lab (RKLB) concluded its most recent trading session at $44.27, gaining 3.41% on volume of 14.1 million shares. This analysis evaluates key technical indicators across the specified framework.
Candlestick Theory Recent sessions show bullish reversal signals near critical support. The 2025-08-11 candle formed a long-legged doji at $41.51 after a steep decline, indicating exhaustion of selling pressure. Subsequent green candles on rising volume validated this support zone near $41.50-$42.00. Resistance converges around $47.25-$48.00, aligning with the July 2025 double-top formation. Price action must sustainably close above $45.69 (the 2025-08-14 high) to signal bullish continuation.
Moving Average Theory The 50-day MA (~$38.80) remains above the 100-day MA (~$36.20) and 200-day MA (~$30.50), preserving the long-term uptrend. However, the current price ($44.27) sits below all three key MAs—typically a bearish near-term signal. The 50-day MA is flattening after acting as resistance in early August, suggesting potential consolidation. A golden cross would require sustained trading above the 50-day MA.
MACD & KDJ Indicators MACD shows a bearish histogram (-1.25) but is nearing a potential crossover as the signal line converges. KDJ readings (K: 35.2, D: 28.7, J: 48.2) recently exited oversold territory (<30), supporting the current rebound. Momentum divergence occurred in late July when price hit $53.44 while MACD peaked lower, foreshadowing the subsequent correction. Current momentum recovery remains tentative, requiring MACD confirmation above its signal line.
Bollinger Bands The 20-day
Bands contracted sharply in early August (-35%
vs. July), preceding the volatility expansion during the rebound from $41.51. Price currently trades near the middle band ($43.80), with the upper band at $48.50 providing immediate resistance. The recent band squeeze resolution favors upside potential, but sustained movement above the middle band is needed to confirm bullish momentum.
Volume-Price Relationship Volume spikes accompanied key turning points: the July peak at $53.44 (46.8M shares) and the August low at $41.51 (24.9M shares). Recent gains occurred on above-average volume (18.4M shares on 2025-08-14 vs 14.1M average), validating buyer conviction. The 3-day volume surge during the rebound from $41.51 provides stronger technical support than the declining-volume sell-off preceding it.
Relative Strength Index The 14-day RSI (41.5) has risen from oversold territory (<30 on 2025-08-11) but remains below neutral (50). This recovery lacks overbought pressure, allowing room for further upside. Bearishly, RSI established a lower high in July during the $53.44 peak versus the prior $51.85 high—a negative divergence that warned of pullback risk. Current neutrality suggests indecision, warranting monitoring for directional confirmation.
Fibonacci Retracement Using the swing high of $53.44 (2025-07-17) and swing low of $41.51 (2025-08-11):
- 23.6% retracement at $44.38 (recent close $44.27 challenges this level)
- 38.2% at $46.06 aligns with the 50-day MA and August resistance
- 50% at $47.47 converges with the July gap-down point
The stock faces layered resistance between $44.38-$47.47. Bullish conviction requires a close above the 50% level to target the 61.8% retracement at $48.88.
Confluence & Divergence Observations Bullish confluence appears at $41.50-$42.00, where Fibonacci support, Bollinger Band lows, volume confirmation, and oversold KDJ/RSI aligned during the August rebound. Bearish confluence persists near $46.00-$47.50, combining Fibonacci resistance, moving averages, and prior breakdown levels. Notable divergence occurred in late July when RSI and MACD momentum indicators diverged negatively from price—a warning that materialized in the subsequent 22% correction. Current indicator alignment suggests consolidation bias unless volume-backed clearance of $45.69 occurs.
Comments
No comments yet