$RKLB - a series of unfortunate events

RKLB A series of unfortunate events!

Here is the chart where I plotted out a series of events that happened since September 2023. It shows the accumulation distribution and FINRA short sale volume.

1. You can see the stock has been in distribution mode since Peter sold 3.6 million shares. It is a small amount compared to what he owns, but it killed the momentum and completed the head and shoulder pattern. The full measured move for that head and shoulder pattern is $2.88!

2. The subsequent electron failure event further pressured the stock.

3. You can also see short activity increased even after winning a $515 million contract. You would think that shorts would cover. Instead, they piled onto the stock.

4. Since after the convertible notes offering, short activity has increased with the daily total volume.

It needs a catalyst to turn the sentiment around. It could be a successful Neutron engine hot-fire test or another big contract award.

As I posted in my prior post, if the current support fails, the stock could drop to $3.17 to $2.88 area.

Note: FINRA data doesn't include all short volume. So the actual volume could be higher.