RKLB trade ideas
$RKLB - Potential inverse cup and handleNASDAQ:RKLB I’ve brought good news before, and it played out. Now, I have to sound the alarm for a potential inverse cup-and-handle formation. The MACD has crossed bearish, signaling weakening momentum.
If this pattern validates, the stock could drop to the $5.50 to $4.90 area, which is where I’ll consider loading up again. 👀
As always, I share my opinions and trades. I’m not suggesting anyone follow my trades. You do you.
Rocket Lab to new all time highs as more things go to spaceRocket Lab build rockets. CEO has an extremely bright aura. Hard to find a better story-driven pure space play with SpaceX being private. I like Rocket Lab and invested because as more and more things fly and go to space, it has the wind at its back.
$RKLB - Ugly candle!NASDAQ:RKLB : Today's candle looks really ugly. We need to keep an eye on the critical support area between $6 and $5.80. If this area fails, the stock could drop to the $5 to $4.80 range.
However, if the stock can hold that critical level, it may consolidate between $7 and $5.80.
This is why I took profits on the run to $7. Now, I can redeploy the capital as the stock pulls back.
As always, I share my opinions and trades. I’m not suggesting anyone follow my trades. You do you.
$RKLB - Will it break down trend line?NASDAQ:RKLB - Rocket Lab tested the upper resistance line of the downward trend line channel but failed to break through and turned back. Will it bounce up from the 100 EMA and try again? 🤔
RKLB 2 Month OutlookIt appears to me that Rocket Lab is forming a bullish pennant, and we should expect to see volume return with an upward move towards $10-$11 a share. Some areas of concern would be the issuance of shares between $8-$12 a share causing dilution that WSB traders may not be aware of.
$RKLB - What's next?NASDAQ:RKLB bounced off VWAP and reclaimed the $6.60 level, which now acts as support. I’m still expecting the price to move toward $8 during this run. Keep an eye on the $7.50 resistance level. 🚀
$RKLB - Why I sell into strength.NASDAQ:RKLB Rocket Lab closed below the $6.60 resistance. The RSI just entered the overbought territory. The previous strong resistance area now acts as strong support. The measured move for the current base breakout is $8.
Why do I sell into strength on options?
Option premiums are inflated during an upswing. When the stock price stabilizes, even at the same level, the premium tends to fall. This is why it makes sense to sell covered calls or ordinary call options that you have during the upswing.
The challenge with this stock is that venture capital firms like Khosla Ventures often unload their shares when the stock gains momentum, effectively capping its rise. For instance, Khosla Ventures distributed 14.5 million shares on August 12. What do you think they’ll do? Their cost basis is pennies per share. Now that the stock is above $6, they can sell those shares and reinvest in other promising startups.
Given this, it makes sense to take advantage of wild swings like this. For example, 23 Aug $10 strike calls were trading at 90 cents per contract this morning. By the end of the day, they were trading at 20 cents. If you had sold covered calls this morning on your shares, you would have profited 70 cents by the end of the day.
Think about it this way: in the worst case, you still end up with a profit. In the best case, the stock comes back down, and you can increase your position size.
As always, you do you. No judgment here.
Have a great weekend!🍻
Rocket Lab’s Stock Surge: A Successful Launch Drives MomentumRocket Lab USA, Inc. (NASDAQ: NASDAQ:RKLB ), a prominent player in the space industry, experienced a significant surge in its stock price, driven by the successful completion of its latest mission in collaboration with Capella Space. On Thursday, Rocket Lab's stock soared by an impressive 12.55%, continuing its upward trajectory with a further 5.34% increase in Friday's premarket trading.
A Week of Success
This week has been remarkable for Rocket Lab (NASDAQ: NASDAQ:RKLB ), with the stock consistently rising as the company solidifies its reputation as a leader in launch services and space systems. The catalyst behind this surge is the successful deployment of a Capella Space satellite using Rocket Lab's Electron rocket. This mission, aptly named “A Sky Full of SARs,” marked Rocket Lab’s 52nd Electron launch and was carried out from their Launch Complex 1 on New Zealand’s Mahia Peninsula.
The mission involved deploying Capella’s latest synthetic aperture radar (SAR) satellite, part of its third-generation Acadia series, into a low Earth orbit. This satellite is a crucial component of Capella’s Earth-imaging constellation, providing high-resolution radar imagery for various applications. Rocket Lab’s ability to deliver precise and reliable launches continues to attract major satellite operators, strengthening its position in the global space industry.
Building Momentum
Rocket Lab’s partnership with Capella Space dates back to August 2020, with this recent mission being the fifth in their multi-launch contract. Over the years, Rocket Lab (NASDAQ: NASDAQ:RKLB ) has proven its capability to meet the growing demand for satellite deployment, consistently delivering successful missions that meet the specific needs of its clients. The company’s CEO, Peter Beck, emphasized Electron's role as a "reliable constellation builder," enabling operators like Capella to expand their satellite networks effectively.
The momentum doesn’t stop here. With nine successful launches already this year, Rocket Lab (NASDAQ: NASDAQ:RKLB ) is on track to achieve its busiest year yet in 2024. The upcoming months are set to be equally exciting, with multiple launches planned, including a record ten-launch contract with Japanese Earth observation company Synspective.
The Road Ahead
Investors are closely watching Rocket Lab (NASDAQ: NASDAQ:RKLB ) as it continues to secure high-profile contracts and deliver on its promises. The company's ability to maintain a steady launch cadence while securing new business partnerships signals strong growth potential. As Rocket Lab (NASDAQ: NASDAQ:RKLB ) prepares for its next mission, set to be announced in the coming days, the anticipation is building, with market participants eager to see if the company can sustain its current momentum.
Technical Outlook
Rocket Lab (NASDAQ: NASDAQ:RKLB ) has experienced a noteworthy increase in its stock price, showing a rise of 5.45% during premarket trading on Friday. This upward movement suggests a positive sentiment among investors and could signify robust interest in the company’s activities. Currently, the Relative Strength Index (RSI) stands at 65, which indicates that the stock may be slightly overbought at this moment. Nevertheless, the RSI also suggests that there is still potential for ongoing growth in the stock, as it remains within a range that could foster further gains in the near future.
In conclusion, Rocket Lab’s stock surge is a reflection of the company’s consistent performance and strategic growth in the space industry. With successful missions like "A Sky Full of SARs," Rocket Lab is not only proving its technical prowess but also positioning itself as a key player in the rapidly expanding space economy. As the company continues to execute on its ambitious plans, investors and industry watchers alike will be keen to see what the future holds for Rocket Lab and its stock.
$RKLB - The bigger the bottom the higher the bounceNASDAQ:RKLB Reminder: Rocket Lab is still in stage 1 and is forming a huge bottom. Well, you know what they say: the bigger the bottom, the higher the bounce. 🚀😂
If you know stage analysis, well you know what to do here.
$RKLB - Could see it retest the resistance area NASDAQ:RKLB Critical support held. The candle looks promising for an uptrend continuation. MACD is about to make a bullish cross. I believe this will retest the $5.80 to $6 resistance area soon.
Ready to launchRocket lab is recovering very fast from past week hard drop
Closing a candle above purple trendline will start a new strong up move
I think it will happen next week during earnings
$RKLB - Can it break out?NASDAQ:RKLB If it retests the $5.80 to $6 area resistance again, there is a high probability that it will break out this time, with the measured move targeting $8.🚀💰
$RKLB Support levels to watchNASDAQ:RKLB The support is holding so far. It is critical that this support holds.
If not, here are the support levels below:
$4.93
$4.66
👀
$RKLB - Sitting on Critical SupportNASDAQ:RKLB has only traded above the current resistance level of $5.80 to $6 twice since 2022. It has failed to break through this level seven times over the past two years, making it the most challenging resistance level to overcome.
For the bullish trend to continue, the stock must hold above the current critical support level. Many stop-loss orders are likely set around $5. Breaking below this level could trigger a significant sell-off.
For long-term investors, this short-term resistance and support analysis may not be as critical, but understanding these levels can be helpful for knowing when to dollar-cost average.
$RKLB Very Short-Term ReversalThis appears to be a very typical pattern for how this stock trades. I expect this to shoot back up short-term
$RKLB Short-Term Bullish TrendDespite being up, a great deal over the past two months, we are in a clear uptrend, and I don't see it slowing down until we hit ~$7 a share. This could fail if some issue arises with the hot fire. But we still have room to run. Look for a pullback near the $7s to allow it to cool off/analyze whether it rejects, or we see a continuation.
RKLB Begins Uptrend
RKLB received a reaction from the support level it has been testing for 2 years and managed to break the downtrend it has been in for the last year.
I bought at 4.65 and I plan to add if it gives me the opportunity to buy again below 5 dollars.
The first target is 7.6. If it exceeds this level, the next targets are 10 and 14 dollars.
$RKLB - What's next?NASDAQ:RKLB Congratulations to those who loaded up under $4 and $5. With today's price action, the stock is up 63% from its all-time lows back in April.
So what's next?
Well, the stock hit the resistance zone today, with RSI entering overbought territory. (See white horizontal resistance line.) That is not to say we are in for a roller coaster ride. Remember, stocks can stay overbought for a very long time. I am hoping that momentum will push it above the resistance and consolidate above that resistance.
My target remains $6.50 - $7.
Rocket Lab USA (RKLB)RKLB was rejected at the 38.2% Fibonacci retracement level of the July through April sell-off. The stock has just benefited from a golden crossover of the 200-day SMA by the 50-day SMA. Now, the stock after testing the lower bounds of our Pitchfork model has exceeded the central trendlines and could run for the upper trendline. Relative Strength is excellent. The daily MACD is postured quite bullishly.
Target Price: $7.25
Pivot: $5.60
Add: On retest of central trendline and down to 21-day EMA.
Panic: Break below the 200-day SMA.
$RKLB Chart is setting up with 10%+ move today, on news.NASDAQ:RKLB is moving to the upside today (+10%) on news of partnership for 10 coordinated launches.
The space economy is a long-shot, but this a gamble I'm willing to take.
I chose to initiate this position to have exposure to more small and mid-cap growth tech companies, this one I really like.
I have detailed my long-term targets on the chart.
My position was initiated at $3.70 - $3.90 BUY target.
Another that I have been holding for a while is NYSE:JMIA , who has the opportunity for explosive growth as their native economy continues to expand.
I like to think of them as the Amazon of Africa...
RKLB: Ready for Lift-Off or Crash Landing? Rocket Lab USA has shown a significant bullish momentum recently, trading at $5.13 with a +0.98% increase on July 10th. The technical indicators point towards a strong buy signal across multiple parameters. The price action is currently supported by robust buying interest, evidenced by the bullish crossover in moving averages and positive momentum indicators.
Moving Averages: The stock is trading above its key moving averages (10, 20, 50, 100, and 200 EMA/SMA), all of which are signaling a buy. The 50-day EMA at $4.52 and the 200-day EMA at $4.55 act as strong support levels.
The Momentum (10) at 0.39 and MACD level (12, 26) at 0.16 indicate continued bullish momentum. The RSI at 64.65 suggests the stock is approaching overbought territory but is not there yet, implying further upward potential.
The Ichimoku Cloud base line at $4.72 provides additional support, with the current price above the cloud, indicating a bullish trend. This further confirms the strong buying sentiment.
The average volume of 7.16M over the past 30 days supports the recent price movements, showing healthy trading activity.
With a beta of 1.50, RKLB exhibits higher volatility compared to the market, making it attractive for short-term traders looking to capitalize on price swings.
Current Trend: The recent breakout past the $5.00 resistance level suggests a continuation of the upward trend. The next resistance is at $5.25, and if breached, the stock could test the $6.00 level.
Forecast: Analysts have a one-year price target of $7.29, which represents a 42.12% upside from the current price. The optimistic scenario sees RKLB reaching as high as $10.00.
Trade Strategy
Long Position: Enter a long position at the current price of $5.13. Target the $6.00 level in the short term, with a stop-loss set at $4.75 to mitigate downside risk. For long-term investors, hold with a price target of $7.29, and consider adding more positions if the price breaks above $6.00.
Short Position: Consider shorting only if the price fails to hold above $5.00 and dips below the 200-day EMA at $4.55. Set a tight stop-loss at $4.75 to protect against a reversal.
Conclusion
Rocket Lab USA is poised for a potential upside, driven by strong technical indicators and positive market sentiment. Traders should watch for key levels and adjust their strategies accordingly to maximize gains and minimize risks.
