Rocket Companies Inc RKT shares are trading lower Wednesday, possibly after the Fed announced earlier in November at the Federal Open Market Committee meeting that it would begin reducing its purchases of Treasuries and mortgage-backed securities.
Rocket was down 5.40% at $15.59 Wednesday afternoon at publication.
Rocket Daily Chart Analysis
- The stock has been pushing lower for most of the year in what technical traders call a falling wedge pattern.
- The price has been getting squeezed in the wedge pattern and looks to be nearing the beginning of the end of the pattern. A few more months and there won’t be much more room for the stock to move within the pattern and will likely see a breakout.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is likely in a period of bearish sentiment.
- Each of these moving averages may hold as a possible area of resistance in the future.
- The Relative Strength Index (RSI) has been pushing lower the past few weeks and now sits at 37. This shows the stock is seeing more selling pressure than it is buying pressure and is nearing the oversold range.
What’s Next For Rocket?
Bullish traders are looking to see the stock find some support and bounce back upward. Bulls want to see the stock form higher lows to possibly show a trend change at some point in the future.
Bears are in control of the stock and are looking to see it continue to push lower. Bears want to see the stock be able to hold below the pattern resistance and the moving averages for sentiment and trend to stay bearish.
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