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Mortgage Lender Forms Coiled Bull Flag as Rates Decline

by | Jun 4, 2024

Rocket Companies (RKT) shares of the mortgage name are sporting a solid bull flag and closed up on Tuesday back over its 8 EMA and nearing a potentially explosive breakout from its monthly value area above 14.60. RKT has spent the past 3 months consolidating above its 200-day MA and has room to run up to 16.00 short term as that is a bigger VPOC level from 2021. RKT still has a 12% short float for fuel higher but has decreased from 25% in the past year, often a good sign. Options flows the past month has seen several call buyers in September $11, $13 and $15 strike calls active. RKT still has a massive bull in open interest from 3/19 buyers of 8800 January 2026 $12 calls at $3.45. Potential to see the mortgage related stocks rally higher as yields decline.

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