Rocket Lab Soars 26% To 12-Month High On Strong Technical Breakout

Rocket Lab (RKLB) has demonstrated a robust bullish trend, surging 26.46% over the past six sessions, including a 4.17% gain to $58.50 on October 6, 2025. This momentum establishes a new 12-month closing high, accompanied by expanding trading volume, indicating strong conviction behind the breakout.
Candlestick Theory
A series of six consecutive white candles since September 29 signals sustained buying pressure, culminating in a decisive breakout above the key $56 resistance—a level tested multiple times in September. The latest candle ($55.80 low, $59.26 high, $58.50 close) shows rejection of prices below $56, reinforcing this level as near-term support. Resistance emerges at the session high of $59.26, with psychological resistance anticipated near $60. The absence of reversal patterns (e.g., doji or shooting stars) at new highs suggests continuation potential.
Moving Average Theory
The 50-day MA ($49.23) has ascended above both the 100-day MA ($47.18) and 200-day MA ($42.87), confirming a bullish golden cross configuration. Price remains decisively above all three moving averages, indicating a strong uptrend. The 50-day MA's steepening slope further validates accelerating momentum. Confluence exists at the 200-day MA, which aligned with June’s breakout level near $32 and now serves as long-term dynamic support.
MACD & KDJ Indicators
The MACD histogram shows a widening positive profile above its signal line since mid-September, reflecting strengthening upward momentum. KDJ registers overbought territory with K at 87 and D at 82, suggesting potential near-term exhaustion; however, this aligns with bullish sentiment during powerful uptrends. No divergence is present—momentum highs continue to corroborate price highs. Traders may watch for K/D crosses below 80 for short-term pullback signals.
Bollinger Bands
Price trades near the upper band ($59.50), hovering 2.7% above the 20-day SMA ($57.00), which denotes near-term overbought conditions. Band expansion from early October (%B rising from 0.7 to 0.98) confirms volatility-driven momentum, while the pronounced band width (14% of SMA) highlights directional conviction. Retreat toward the SMA could offer buying opportunities if supported by volume.
Volume-Price Relationship
Volume has trended higher during the six-day advance—average daily volume of 32.9M shares significantly exceeds the 20-day average (25.1M)—strengthening trend validity. Volume climaxed on October 3 (37.7M shares), confirming breakout momentum. The absence of climactic selling during pullbacks further supports accumulation activity. Current volume profiles suggest sustainable demand near new highs.
Relative Strength Index (RSI)
The 14-day RSI (75) resides in overbought territory but remains below the 80 threshold seen at prior short-term peaks. While elevated RSI warrants caution about near-term exhaustion, it is not inherently bearish during strong trends. RSI divergence is absent, with oscillator highs matching price highs. Traders may monitor for a retreat below 70 as an early signal of consolidation.
Fibonacci Retracement
Applying Fibonacci to the upswing from the August 21 low ($41.53) to the October 6 high ($59.26) yields retracement supports at $56.24 (23.6%), $54.39 (38.2%), and $52.89 (50.0%). The latter converges with the breakout level from early October, offering strong technical significance. A pullback to these zones could attract buyers, while $59.26 serves as immediate resistance with extension potential to $65.00.
Confluence and Divergence Observations
Notable confluence appears at the $52.00–$54.00 zone, where the 50% Fibonacci level, September resistance, and the rising 50-day MA align. This area should provide robust support during pullbacks. Divergence is absent across momentum and volume indicators, supporting trend sustainability. The only emerging risk remains short-term overextension signals from Bollinger Bands, RSI, and KDJ, though these lack bearish confirmation against the dominant uptrend. Overall conditions suggest tactical consolidation may precede further upside.