RKTLONG-TERM: At the bottom of a wyckoffian range. Also earnings at end of the month, could see a run up to then. (Not financial advice)
RKT trade ideas
$RKT | Rocket Companies 🚀 Descending Channel $RKT formed a bullish descending channel. Watch for a breakout for upside continuation.
ER next week.
See my previous $RKT analysis:
RKT LookRocket moving in the oppsite direction of a rocket
Breaking past 19.83, if breaks past 18 Fib, will continue
Without a catalyst or good news, will continue bear trend
RKT Rocket readyRocket: Stage 6 launch, the 6th go at it here. Not quite ready yet, wait for some consolidation and be patient! Let the trade come to you. RSI needs to begin to heat up before I enter the Rocket launch.
Stocks: A good risk reward would be entering in the "area of value" along the trendline and set stops below support (draw your own or auto shown on TRND bot indicator.)
Calls: I am waiting on the breakout and buy signal confirmation.
Pay your mortgage with this trade but don't lose your mortgage! Good luck trade smart!
Dont sleep on RKT.This stock you can argue that it hasnt done much, but this upcoming earnings will be exciting. Today we saw red all around which i blame the bad jobs report. But these are the days to look for discounts, and this one is a deal. MACD is in the red right now and RSI is steady. Earnings is next week and this one could move up massively.
RKT Long Entry- K.I.S.S. MethodNYSE:RKT
Fib retracement is complete, bullish bounce on the 4HR.
Entry- $20
$25 1 PT
$35 2nd PT
I like to use the K.I.S.S method of investing, Keep it simple stupid!
This is not financial advice, I'm a poor bastard so probably be best not to listen to me. However, this setup looks nice. $RKT has been rangebound from shorts since its IPO I like it to break out from its descent here and start a more bullish climb in 2021.
This is my first post, so leave a like and let me know what you think!
$RKT about to take off$RKT is coiling up, getting ready for a move, and in my opinion is forming a descending triangle, which are typically bullish patterns. The 1 hr also shows a bullish divergence on the RSI, the volume is also dying down, but continuing to go down which is a bullish divergence as well.
On the daily price looks to be forming and even greater coil meaning an even bigger move. But for the 1hr targets I'm aiming for the POC / Median of channel @ $21.50 - $22 and a 2nd target which is the grey box area.
RKT- Delayed (This maybe why) updateI said I would ppost an update if there was another pattern and I believe I am correct. Also I have updated the loss motion lines that are also supporting what appears to be the bottom. I forgot to extend them in the last chart, hence why I was originally expecting a fast push up by now.
When I did not see this I was conscious of the fact there may be another pattern before higher prices... and seems I was correct. We have a bear shark pattern that pushed price lower, but we may be at the bottom of this pattern and retuning up. Beware of flash price movements here. Its very possible to run flat in price for a long time- and then check up and then right back down- scaring weak holders and triggering stop limit orders for losses before the move up. We can see this sort of shock in price as we go lower before this pattern. The spike and drop is normal...
Should price go below where we are now - I would be surprised. Its possible we may get another pattern like this (there have been several) but I wouldn't bet on that (due to other reasons like lost motion lines etc).
I think brighter days will come around 25th-28th... I have a conservative target marked. Once we get things jumping it may be easier to see an ultimate top. Until then lets just wait this out another 5 days or so.
RKT - Prior Trades=Profit - Careful w/ Earning 2/25 AfterMarketRKT
Entry = 19.25 - 20
Cost Avg Down = 17.50 - 18
1st profit Target = 21.64
2nd Profit Target = 24
HODL Target = 618@28.00+
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This content is for informational, educational and entertainment purposes only. This is not in any way, shape or form financial or trading advice.
Good luck, happy trading and stay chill,
2degreez
$RKT - watch for a reversal$RKT and $UWMC could easily turn up going into spring. This is a good place for starter positions
$RKT Earnings Play - Shoutout Brett$RKT has been trading in a fairly defined channel - good earnings/ trading into earnings could result in an uptrend.
Targets are identified on the chart.
Rocket Companies ready to take offAlmost 40% below its September all-time high.
Stochastic at the oversold point.
On-balance volumen falling into a support level for possible reversal.
It has respected the Fibo areas on several occasions.
Touching support at 23.6% of the fibo around $20.
It has resistance at $22.7 and another around $25.
Almost 70% institutional property.
Backed by Invesco, BlackRock, Vanguard, State Street and Morgan Stanley.
"Rocket Companies Inc.is a holding company consisting of personal finance and consumer service brands including Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Amrock, Core Digital Media, Rock Connections, Lendesk and Edison Financial. Rocket Companies Inc.is based in Detroit."
NYSE:RKT
RKTBy the Elliot wave theory, I'm seeing a 1-2-i-ii count which indicates a potential wave 3 - the strongest and longest impulse wave. Rocket Loans is still a young company, but an EPS of 33.05 shows just how profitable they are. Will buy on the breakout of the ii correction.
RKT (Rocket Companies) Long PositionWas a little late on this, but the pattern formation did not complete until closing time. Seems to be sufficient support developing as well. Price movement may be very dramatic in the a.m. but I think Rocket is set to take off!
Trade responsibility (w/e that means) lol
CHEERS
WHY INVEST IN RKT NOW! HIGH REWARD, LOW RISK Rocket Companies (RKT), is a Detroit-based company obsessed with helping our clients achieve the dream of homeownership and financial freedom.
Our flagship business, now known as Rocket Mortgage, was founded by Dan Gilbert in 1985. Since then, we’ve revolutionized the mortgage industry – twice – and taken our place as the industry leader. The Rocket brand is synonymous with providing simple, fast and trusted digital solutions for complex transactions. When you need a mortgage, a real estate agent, a personal loan or a car, Rocket gets you there fast.
Some stats:
$213B -3QYTD 2020 mortgage originations
$11.0B -3QYTD 2020 total revenue, net
~4.6x -the industry average refinance retention rate
22,000 team members
Why Invest in RKT:
* Accelerating Market Opportunity. RKT is at the center of the largest consumer asset class in the U.S., supported by ~3% annual home price appreciation
* The "Rocket" brand is synonymous with providing simple, fast and trusted digital solutions for complex personal transactions
* Leveraging decades of technology investment and innovation to drive industry disruption and deliver an unmatched customer experience
$213B -3QYTD 2020 mortgage originations
$11.0B -3QYTD 2020 total revenue, net
~4.6x -the industry average refinance retention rate
22,000 team members
RKT , Read the financial statements before investing , Bearish Rkt's first earnings report, beat significantly, and in my opinion tricked quite a few people, I suppose was a good example of the saying " buy the rumor , sell the news" .
That first earnings report was, at first glance, nothing short of amazing but then the drop to laggard status ... why ?
Also , why the high short interest and why the recent institutional ownership sell off ?
There is a series of reasons...
I took a dive into RKT's financial statements, analyst forward estimates and I can see that they support the stocks move down.
I also think there is a good possibility of a further breakdown in share price going forward .
I am going to go over the main points and let interested parties know where to look to see the fine print as I think quoting financial statements is somewhat inefficient when you can go look at them directly.
I highly suggest you take a look at their yearly :
Balance sheet
Income statement
Cash flow statements .
*I also suggest looking at their detailed analyst forward estimates .
I focused on their debt , revenue trends and took a look at the analysts forward estimates for EBIT and EPS.
Their debt is alarming , particularly their short term debt. Debt has grown exponentially since 2019 , which was pre ipo, but has continued to grow post IPO.
NOTE: I am not sure the reason behind this debt, more research is needed there as I can see the long term and short term debt but not the reason for it and pre IPO short term notes are hard to find info on too . None the less, a red flag needing more research for sure imo. It's not like their debt is increasing along with eps right. Debt is "rocketing" , pun intended, and eps is losing steam , not a good combination .
Yearly revenue trends is mixed , mostly bearish I'd say but we are up and down here... definitely not bullish though for that we want to see a nice consistent growth , preferably a history of increased sales accompanied with earnings growth and beats .
Also, quite concerning is forward analyst estimates as the 2020 to 2022 EBIT and EPS estimates are WAY down .
I know I said I wasn't going to quote data but here is some analyst estimates for EBIT and EPS to give you an idea.
EPS 2020 $3.85 ( 15 analysts )
2021 $1.91 ( 15 analysts )
2022 $1.72 ( 14 analysts )
EBIT 2020 9 Billion
2021 5 Billion
2022 4 Billion
( all rounded to nearest billion )
So , just some basics but we have significantly increased debt and eps/ebit that's expected to trend down and that would justify reduced share price and a potential breakdown in the future to form a new low .
I think that Rocket's potential share buyback announcement is simply because they are trying to use it as a means to keep the share price from dropping too much and I don't think its "positive" I think its a spin .
In summary , I have found that for a stock to preform well it needs a catalyst and that catalyst is usually in the form of earnings growth , sales growth and better margins . So , for RKT to turn things around , we need to see that or there is definitely more downside potential .
Just my 2 cents .
Good luck ~
RKT Looks like its ready for a bullish reversal Add this to your watch lists! Looks like its ready to turnaround
RKT - breakout watch - target $28If the price break above $22, the target projection price is $28.
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How to read my charts?
- Matching color trend lines shows the pattern. Sometimes a chart can have multiple patterns. Each pattern will have matching color trend lines.
- The yellow horizontal lines shows support and resistance areas.
- Fib lines also shows support and resistance areas.
- The dotted white lines shows price projection for breakout or breakdown target.
$RKT Volume Shelf, Accumulation @ 21.50. Potential EntryRKT was clearly impacted by the GME short covering. However, the price looks to have start to accumulate around 21.5.
