Key Levels To Watch In Rocket Companies Stock

Rocket Companies Inc. RKT shares traded lower Tuesday after Wedbush analyst Henry Coffey downgraded the stock from Neutral to Underperform and lowered the price target from $14 to $12.

Rocket Companies was down 0.66% at $17.22 at last check. 

Rocket Companies Daily Chart Analysis

• Shares have been trading in a sideways channel, but recently looked to have fallen below support.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the sentiment in the stock is bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key Rocket Companies Levels To Watch

• The stock just broke below the $19 level, which was holding as a support level before it was broken.
• If the stock can cross back above the $19 level then it may not find a strong resistance level until it nears the $24 area. This area held as resistance many times in the past.
• The Relative Strength Index (RSI) sits at 33 and has been falling throughout the last couple weeks. The RSI is nearing the oversold area at 30,  here there will be many more sellers than buyers in the stock.

What’s Next For Rocket Companies?

Bulls would like to see the stock bounce and start heading higher. Bulls want to see the stock get back above the $19 level. If the stock can consolidate above the $19 level, then it may see a further bullish push.

Bearish traders would like to see the stock continue to fall and fall all the way to the new price target. Bears are in control of the stock currently, and for them to maintain control the stock they want the stock to continue to trade below the moving averages.