Rocket Lab Rallies 11% In Two Sessions As Technicals Signal Bullish Continuation

Rocket Lab (RKLB) closed at $47.73 on September 8, 2025, gaining 4.12% and extending its rally to two consecutive sessions with a cumulative 11.03% advance. This price action occurs within broader technical patterns that warrant detailed examination.
Candlestick Theory
The recent two-day rally forms a bullish continuation pattern following the September 5 hammer candle (low: $42.39, close: $45.84), which rejected lower prices near the $42.70 support established on September 4. Key resistance emerges at the August 26 swing high of $50.92, while the September 3 wick low of $43.51 serves as immediate support. The September 3 session featured a long-legged doji with a 13.9% intraday range, signaling indecision after the sharp 11.7% decline, ultimately resolved by the subsequent bullish reversal.
Moving Average Theory
Price currently trades above all major moving averages, with the 50-day SMA at $41.25, the 100-day at $38.70, and the 200-day at $30.15. The ascending alignment (50>100>200) confirms a primary uptrend. Recent bounces near the 50-day SMA (August 21 low: $40.22) reinforce its dynamic support role. The 20-day EMA at $44.80 now acts as immediate trend support following the breakout above this level on September 5.
MACD & KDJ Indicators
The MACD histogram has turned positive after a bullish crossover on September 4, with the signal line (12.5) crossing above the MACD line (10.2). Meanwhile, the KDJ oscillator shows %K at 82 and %D at 75, entering overbought territory after crossing bullishly on September 1. While this signals near-term upward momentum, the KDJ's overbought reading warrants monitoring for potential exhaustion. No bearish divergence exists currently.
Bollinger Bands
Bollinger Bandwidth contracted 40% during the August 26-September 3 consolidation, with the September 5 breakout triggering an expansion cycle. Price now touches the upper band at $47.95, indicating stretched short-term conditions. The mid-BB at $44.50 coincides with the 20-day EMA, creating a significant support confluence. The bands widening from 10% to 15% volatility confirms the breakout's validity.
Volume-Price Relationship
The rally exhibits strong volume validation, with September 5 volume (17.4M shares) doubling the 30-day average and September 8 turnover (18.8M shares) remaining elevated. Notably, the September 3 sell-off on 33.3M shares (year's second-highest volume) failed to sustain below $43.51, creating a capitulation low. The subsequent rebound on expanding volume demonstrates accumulation, though sustainability concerns emerge with volume slightly declining on the second up day.
Relative Strength Index (RSI)
The 14-day RSI reads 68, approaching overbought territory but lacking prior divergence at recent highs. The indicator has rebounded sharply from 45 on September 4, supporting bullish momentum. While not yet overbought (>70), its current position suggests near-term extension potential. The RSI's failure to reach oversold levels during the early September pullback reinforces the underlying strength.
Fibonacci Retracement
Using the swing low of $40.22 (August 21) and peak of $50.92 (August 26), Fibonacci levels provide critical navigation zones. The September 5 bounce originated from the 61.8% retracement at $44.20, while price now challenges the 23.6% level at $48.20. Confluence appears at the 38.2% retracement ($45.50) with the 20-day EMA, creating a strong support floor. The 50% level at $45.60 further strengthens this technical foundation.
Confluence exists between Fibonacci support ($45.50-$45.60), the 20-day EMA ($44.80), and Bollinger mid-band ($44.50). This multi-indicator convergence zone strengthens the bullish case, though overbought readings on KDJ and RSI nearing threshold levels warrant caution. Bearish divergence is absent across oscillators. The technical posture suggests continued upside toward $48.20-$50.92 resistance, contingent on volume sustainability and RSI behavior.