Which Direction Is Rocket Companies' Chart Heading?

Rocket Companies Inc (NYSE: RKT) shares are trading higher Wednesday and looking to climb back into what traders call a falling wedge pattern. JPMorgan upgraded the stock to Overweight and lowered the price target to $15.

Rocket Companies was up 3.78% at $13.47 Wednesday at publication.

See Also: Mike Khouw Looks At Rocket Companies' Options Activity: More Weakness Ahead?

Rocket Companies Daily Chart Analysis

• Shares fell below support in the falling wedge pattern and are looking to reclaim the level once again. If unable to reclaim support, the stock could see a bearish push.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been trending lower throughout the past couple of months and sits at 36. This shows that sellers have been moving into the stock and the selling pressure has been increasing over time.

What’s Next For Rocket Companies?

Rocket needs to reclaim this support level for it to see a possible reversal. If unable to cross the support level it may be ready for a strong bearish move in the future. Bears are looking for the support level to hold as resistance and for a price drop in the future. Bears are in control of the stock and are looking for the price to hold below the moving averages as well. Bulls are looking for the price to be able to cross back above support and then possibly keep climbing. If the stock can form higher lows and break above pattern resistance it may show that a long-term reversal is happening.

Photo by Jamie Street on Unsplash