Adding to Rocket Lab in the Midst of an Emergency
Here's my plan as the aerospace darling faces a critical move in the stock chart.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
This is an emergency "heads up." Take a look at the chart below:
"Stocks Under $10" stalwart Rocket Lab RKLB is testing its own 50-day SMA from above for the third day in a row. The stock did this in August as well and passed that test. Coming out of the cup-with-handle bullish pattern, the stock rallied sharply and then put in a bull flag pattern of continuance. That means that if the stock passes this test, it likely continues on in rally mode.
That said, this is not a profitable company just yet. Should that 50-day line crack with a daily MACD that is getting messy (nine-day EMA is negative, 12-day EMA is below the 26-day EMA), then the pros will reduce long-side exposure and so will I.
In the meantime, I am adding at that line in case it holds. In addition, the stock really has no level in between the 50-day SMA and the 200-day SMA should this happen. Like I said, I am adding for now, but with an itchy trigger finger.
At the time of publication, Guilfoyle was long RKLB equity.
