Rocket Lab Soars 7.65% on Three-Day Rally, Cumulative Gains Reach 17.26% as Technical Indicators Signal Strong Bullish Momentum

Rocket Lab (RKLB) has surged 7.65% in the most recent session, extending a three-day upward trend with a cumulative gain of 17.26%. This sharp rally suggests strong near-term buying momentum, particularly against a backdrop of elevated volatility and expanding price ranges. Below is a structured technical analysis based on the requested frameworks.
Candlestick Theory
Recent price action reflects a bullish bias, with higher highs and higher lows forming a rising channel. Key support levels emerge at $49.05 (Dec 5 close) and $47.52 (Dec 2 trough), while resistance is clustered around $53.43 (Dec 9 high) and $57.52 (Dec 10 close). A notable bullish pattern is the "three white soldiers," confirmed by the three-day rally. However, caution is warranted if the price fails to hold above $51.56 (Dec 8 close), which could trigger a pullback toward the $49.05 support.
Moving Average Theory
Short-term momentum is reinforced by the 50-day moving average (approximately $50.50) crossing above the 200-day MA ($47.00), forming a "golden cross." The 100-day MA ($49.50) aligns with this, suggesting a medium-term uptrend. However, the 200-day MA’s lagging nature implies the trend remains in early stages, with potential for further consolidation if the 50-day MA dips below the 100-day MA.
MACD & KDJ Indicators
The MACD histogram has expanded positively, indicating strengthening bullish momentum. The KDJ oscillator (Stochastic RSI) shows overbought conditions (K=85, D=78), suggesting a potential near-term pullback. Divergence between the KDJ and price action is minimal, but a failure to break above the 20-day high of $58.83 could trigger a bearish signal.
Bollinger Bands
Volatility has spiked, with the price currently near the upper band ($58.83). This "overbought" position relative to the bands suggests a short-term correction is probable. A retest of the lower band ($49.05) could occur if the upper band fails to hold, though the expanding bands indicate a possible continuation of the rally.
Volume-Price Relationship
Trading volume has surged in tandem with the price increase, with the most recent session’s volume (38.8M shares) exceeding the 30-day average by 40%. This validates the sustainability of the rally but raises concerns about overbought conditions. A drop in volume during further gains could signal waning momentum.
Relative Strength Index (RSI)
The RSI has entered overbought territory (>70), indicating a potential exhaustion of the upward move. While strong trends can sustain overbought readings temporarily, a close below 60 would heighten bearish probabilities. A 14-day RSI of 72 suggests caution, particularly if the 30-day moving average fails to provide support.
Fibonacci Retracement
Key retracement levels are established between the Dec 13 low ($44.82) and Dec 10 high ($58.83). Critical levels include 61.8% at $51.85 and 78.6% at $54.23. A breakdown below the 50% level ($51.78) could target the 38.2% level ($49.90), aligning with recent support.
Confluence and Divergence
Strong confluence exists between the bullish moving averages and overbought RSI, suggesting a high-probability continuation of the trend if the price holds above $51.56. Divergence is minimal but emerges in the KDJ oscillator, which may foreshadow a short-term reversal. A failure to break above $58.83 would heighten bearish risks, particularly if volume declines.

The analysis underscores a bullish bias in the near term, supported by technical alignment but tempered by overbought conditions. Traders should monitor the $51.56 support and $58.83 resistance for directional clues, with Fibonacci levels offering potential entry/exit points. Probabilistic risks include a pullback to $49.05 or a continuation of the rally above $58.83, contingent on volume and momentum indicators.