Rocket Lab Stock Rises 3.59% Amid Bullish Candlestick Signals And Strong MA Support

Candlestick Theory
Rocket Lab's recent sessions show notable candlestick patterns. The August 25–26 bullish engulfing pattern (low: $44.05, high: $50.92) signaled strong reversal momentum after a prior downtrend. This was followed by consolidation near $48–$47.91, with August 28 closing at $47.91 (+3.59%) on above-average volume, suggesting buyer conviction. Key resistance is established at $50.92 (August 26 high), while support lies at $45.34 (August 28 low). The lack of long wicks near resistance implies persistent selling pressure, warranting caution for breakouts.
Moving Average Theory
The 50-day MA (approximated ~$39) acts as dynamic support, consistently guiding rallies since June 2025. Rocket Lab trades above all key MAs (50, 100, 200-day), confirming an uptrend. The 100-day MA (~$35) and 200-day MA (~$25) exhibit bullish separation, reinforcing long-term strength. Recent price dips toward $40.69 (August 20) found support near the 50-day MA, highlighting its role as a buying zone. The sustained price position above the 50-day MA suggests ongoing bullish sentiment.
MACD & KDJ Indicators
MACD shows a bearish divergence: while prices tested $51.85 in July, the MACD histogram has since trended lower, indicating weakening momentum. The signal line is converging toward the MACD line, hinting at potential downward crossover risk. KDJ reflects overbought conditions retreating; the J-line dipped from 90+ in July to ~65 recently but remains above the K and D lines. This divergence signals slowing upside momentum, though no immediate reversal trigger exists.
Bollinger Bands
Bollinger Bands expanded sharply during the July–August volatility surge (width peaking near $8), contracting recently as Rocket Lab stabilized near $45–$48. Price hovers near the upper band ($48.50–$49), indicating elevated near-term resistance. The contraction phase suggests consolidation before a potential directional move. A sustained close above $49 would signal renewed bullish momentum, while failure may retest the middle band (~$43).
Volume-Price Relationship
Volume spikes validated key rallies: June 23 (+9.12% on 44M shares), July 14 (+10.71% on 29.2M shares), and August 25 (+6.40% on 30.1M shares). Conversely, the recent pullback from $50.92 (August 26) saw declining volume, suggesting limited sell-off conviction. The August 28 gain occurred on 16.9M shares—above the 10-day average—supporting upside credibility. However, diminishing volume during consolidations (e.g., early August) reflects hesitation.
Relative Strength Index (RSI)
The 14-day RSI (calculated using the closing prices) oscillates near 62.3, retreating from overbought territory (>70) in late July but holding above neutral. This indicates balanced momentum with room for further upside. Notably, RSI failed to breach 70 during the August rally, diverging from July’s peak. While not oversold, weakening RSI highs alongside price highs reinforce the MACD’s cautionary signal.
Fibonacci Retracement
Applying Fibonacci to the rally from the June 20 low ($24.87) to the July 17 high ($53.44):
- 38.2% retracement at $42.50 acted as strong support in early August.
- 50% level ($39.15) aligns with the 100-day MA and defended the August 19 sell-off ($40.92 close).
- The 61.8% level ($35.80) converges with the 200-day MA—a critical long-term support.
Current price sits above the 38.2% level, maintaining bullish structure. A break below $42.50 may trigger a deeper pullback.
Confluence and Divergence
Strong confluence exists at $39–$42, where the 100-day MA, Fibonacci 50% level, and volume-based support align. This zone offers a high-probability bounce area. Bearish divergences between price (higher highs in July/August) and both MACD/RSI (lower highs) warn of potential consolidation or correction. However, the overarching trend remains bullish, supported by moving averages and volume-backed rallies. Near-term price action appears range-bound ($45–$49), with a breakout above $50.92 needed to resume the uptrend.