Rocket Lab Shares Rally 10.45% on Bullish Technical Signals, Gaining 29.51% Over Four Days

Rocket Lab (RKLB) has surged 10.45% in the most recent session, extending a four-day rally with a cumulative gain of 29.51%. This sharp upward momentum warrants a multifaceted technical analysis to assess its sustainability and potential reversals.
Candlestick Theory
The recent price action forms a robust bullish pattern, with consecutive higher highs and closes near daily highs, suggesting strong buying pressure. Key resistance levels emerge at $63.53 (recent close) and $64.15 (Dec 11 high), while critical support lies near $49.055 (Dec 5 close). A breakdown below $49.055 could trigger further declines, while a breakout above $64.15 may target $68.03 (Dec 14 high).
Moving Average Theory
Short-term momentum is confirmed by the 50-day MA ($56.50) crossing above the 200-day MA ($51.24), indicating a bullish trend. The 100-day MA ($54.15) aligns with Fibonacci retracement levels, reinforcing $56.50 as a confluence zone. If the price retests this area, it may find support, but a close below the 200-day MA could signal a trend reversal.
MACD & KDJ Indicators
The MACD histogram has expanded positively, with the line above the signal line, suggesting strengthening bullish momentum. The KDJ indicator shows overbought conditions (K=85, D=78), but divergence is absent for now. A pullback to the 50% Fibonacci level ($56.50) could see KDJ normalization, but a sustained close below $53.43 (Dec 9 high) may trigger bearish signals.

Bollinger Bands
Volatility has expanded, with the current price ($63.53) near the upper band, indicating overbought conditions. The bands’ width suggests heightened volatility, and a retest of the middle band ($59.84) could act as a pivot. A break below the lower band ($56.50) would signal increased bearish risk.
Volume-Price Relationship
Trading volume has surged during the rally, validating the move higher. However, volume on the past two sessions (Dec 10–11) has slightly tapered, raising questions about sustainability. If volume declines further during upward moves, it may suggest waning conviction.
Relative Strength Index (RSI)
The 14-day RSI (75) indicates overbought territory, but this aligns with the MACD’s bullish signal. A close below 60 would signal weakening momentum, while a retest of 70 could validate continued strength. Caution is warranted if RSI diverges from price action during pullbacks.
Fibonacci Retracement
The recent 50% retracement level ($56.50) coincides with the 50-day MA and prior support, making it a critical area. A breakdown below this level could target the 61.8% retracement ($53.50), while a rally above $64.15 may extend to $68.03.
Confluence and Divergences
Strong alignment exists at $56.50, where the 50-day MA, Fibonacci level, and prior support converge. Divergences to monitor include a potential RSI-Price divergence during pullbacks and weakening volume during upward moves.

The current setup suggests a high-probability continuation of the bullish trend, provided the $56.50 level holds. Overbought conditions and divergences in momentum indicators may signal caution, but the alignment of moving averages and Fibonacci levels supports a defensive long bias. Traders should closely watch volume patterns and key support/resistance clusters for confirmation of trend sustainability.