March 31 Chart of the Day - Rocket Companies
Highly precise price action technical analysis offers the strongest trading edges and the most opportunities across the markets, making it the foundation of our reviews.
Rocket Companies (RKT) announced its second major acquisition this month on Monday, signaling a push to expand its footprint in the fragmented mortgage servicing sector.
The company plans to acquire mortgage servicer Mr. Cooper (COOP) in an all-stock deal valued at $9.4 billion. This follows Rocket’s earlier move to acquire Redfin (RDFN)—a well-known real estate brokerage and home data platform—for $1.75 billion.
As requested, this analysis will take a price action technical analysis approach to assess key levels and potential next moves for the stock.
When combined with powerful mental performance strategies, this method becomes the ultimate blueprint for thriving in any market, on any time frame.
Since May 2023, we've delivered over 450 high-impact Charts of the Day and provided elite-level Price Action Trading education — 100% FREE — to traders inside our highly-rated Trade Room.
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Monthly Chart
While we generally prefer to analyze charts with a minimum of 5–10 years of historical data, we’re also open to reviewing charts that demonstrate technically sound price action patterns like this one has the past two years.
On the monthly chart we can see that after the company's initial public offering (IPO) price fell down to $5.17 during the next two years.
With little to no prior price history after an IPO, price often enters what we call a "discovery phase" to establish new market structure.
In this scenario, once price established a bottom it began to cycle up and cycle down in a technically sound and orderly fashion.
Volatility is a common price action behavior, though it tends to be unpopular among investors.
Weekly Chart
On the weekly chart we can see where price has made a series of higher highs and higher lows /aka/ an uptrend since establishing a bottom.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
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