Chart of the Week: Rocket Lab
Hey good morning everyone. Happy Wednesday. It’s time for our chart of the week. And this week we’re gonna be focused in on a new name that we’ve been watching for a while. It’s called Rocket Labs; RKLB is the symbol. Let’s take a look at this chart. It’s been looking like a rocket ship for the past few months.
Take a look at this one. This one’s clearly in a nice uptrend, higher highs, higher lows. We connect the bottoms over here, so there’s a little bit of room to come to the downside. If it decides to do it.
But what I really like here is the fact that the stock’s made a nice cup and handle pattern. You can see that here – it’s made a little cup here, a little handle there, lIttle cup here, and now a little handle over here.
So it’s been making a series of higher highs, higher lows. That is the textbook definition of an uptrend – higher highs and higher lows.
One thing I did want to point out here is this big strong volume day right here. And the stock took off from there to the upside with some good heavy volume about three, four, five days later. Just took off from $35 up to about $55 – about 60% move in about seven days. Just extraordinary.
The stock has pulled back a little bit recently, and you can see that, but it has also pulled back on lower volume. Which tells you what? Tells you that big institutions are not distributing the stock, not selling the stock.
We also still have strong money flows, even as the stock has come down quite a bit.
We see a nice trend here in on-balance volume.
And MACD has crossed over. Obviously you would expect that when the stock broke a little bit here on lower volume. The price action is not positive right now, but again it’s just testing some levels here.
And I think that once we establish a low here and base for a couple of days, maybe for a couple of sessions over here, maybe go like – we can start making a move up and I think this stock has got a lot of momentum. And I think it’s going to make a run towards $55 again, maybe up towards $60.
So take a look at Rocket Labs; RKLB is the symbol. Thanks so much for watching everyone and I’ll see you next time.
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