Rocket Lab (RKLB) Surges 30.69% in Two Days as Bullish Patterns and Golden Cross Signal Strong Short-Term Momentum

Rocket Lab (RKLB) has surged 17.69% in the most recent session and 30.69% over two trading days, reflecting a sharp reversal from prior volatility. This price action, combined with elevated trading volumes (e.g., $3.55 billion in the last session), suggests strong short-term buying pressure. Below is a technical analysis across multiple frameworks:
Candlestick Theory
Recent candlestick patterns indicate a potential bullish continuation. The last two sessions formed a "Bullish Engulfing" pattern, where higher highs and lows confirm institutional participation. Key support levels include the 53.08–53.96 range (December 17–18), while resistance is currently at the 70.52–65.18 zone (December 19–12). A break above 70.52 may target prior resistance at 72.18 (October 20), but a failure to hold above 53.08 could trigger a retest of the 47.05–43.53 consolidation range (November–December).
Moving Average Theory
Short-term momentum is reinforced by the 50-day MA crossing above the 200-day MA, forming a "Golden Cross" around $45. The 50-day MA currently sits at $55.49 (December 16), aligning with the recent price action above $70.52. However, the 200-day MA at $40.37 suggests long-term buyers remain active. The 100-day MA at $49.37 acts as a dynamic support, and a sustained break below this level may invalidate the bullish thesis.
MACD & KDJ Indicators
The MACD histogram has turned positive, with the MACD line crossing above the signal line, confirming momentum. However, the KDJ (stochastic oscillator) is in overbought territory (85–90), suggesting a potential pullback. Divergence between the KDJ and price action—where price makes higher highs but KDJ peaks lower—may signal weakening momentum, increasing the risk of a correction.
Bollinger Bands
Volatility has expanded, with the 20-day Bollinger Bands widening from a prior contraction in late November. The current price of $70.52 is near the upper band, indicating heightened bullish momentum. A break above the upper band may extend the trend, but a close below the lower band ($55.49) could signal a shift in sentiment.
Volume-Price Relationship
Volume has surged in tandem with price, validating the recent rally. For example, the last session’s $3.55 billion volume (December 19) is 2.1x the 30-day average, suggesting conviction. However, if volume declines during further advances, it may indicate waning participation, increasing the risk of a reversal.
Relative Strength Index (RSI)
The 14-day RSI is at 75, entering overbought territory. While this does not guarantee a reversal, it highlights the risk of a short-term correction. A drop below 50 would signal weakening momentum, while a sustained move above 70 may indicate a new bullish phase.
Fibonacci Retracement
A 12-month trend line from the low of $22.01 (December 26, 2024) to the high of $70.52 (December 19, 2025) shows key Fibonacci levels. The 61.8% retracement at $52.91 aligns with recent support, while the 78.6% level at $62.98 is a potential resistance. A break above $70.52 may target the 100% extension at $79.03, but a retest of the 38.2% level at $43.51 could occur.
Confluence and Divergences
The bullish case is strongest when the 50-day MA, MACD, and Bollinger Bands align with price above $70.52. However, overbought RSI and KDJ readings create a probabilistic risk of a pullback to $53.08–55.49. Divergence between RSI and price action (e.g., higher highs with lower RSI peaks) would increase this risk.