Rocket Companies Is Not Ready to Blast Off

The company went public seven months ago.
Stocks quotes in this article: RKT

"I think they're terrific and they've done well," said Jim Cramer to a caller during the Lightning Round segment of Mad Money Friday night asking about Rocket Companies (RKT) , the parent of Quicken Loans and Rocket Mortgage.

RKT went public seven months ago so let's check out the charts.

Trading started in August and traders and observers saw a really wide range. Smaller rallies have followed and each rally has been heavily retraced. The August low was retested at the end of November.

I see no special activity from the volume histogram but the On-Balance-Volume (OBV) line shows a rise from late September. The Moving Average Convergence Divergence (MACD) oscillator has been improving since November but basically has stayed close to the zero line. Not much in the way of sustained trend strength.  

 
In this daily Point and Figure chart of RKT, below, we can see the sideways trading range but also a potential price target of $33. 
 
 
 
Bottom-line strategy: So far RKT has been stuck in a choppy sideways trading range. This could continue a bit longer. I would wait for a close above $26 to tell me that an uptrend was getting underway. Stand aside until we get moving on the upside.
 
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TAGS: Investing | Stocks | Technical Analysis | Financial Services | Mad Money

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