Rocket Companies, Inc.
Panjang

$RKT Short term target of $26 - UPDATED

338
The previous count was invalidated when wave 2 retraced beyond wave 1. This looks more like a WXY double correction. Double corrections are 3-1-3 waves where the W and Y waves are ABC corrections, and the X wave is a 5-3-5 zigzag.

With the large price fluctuations after IPO, this sort of prolonged consolidation makes sense. If we are finally breaking this consolidation, we could be starting a wave 1. We need to break above 23 to break out of the larger triangle pattern. This could coincide with a 5 wave sub structure of the newly started wave 1, as shown on the chart. In this scenario, the sub wave 1 would get rejected at 23 initially, consolidate into a wave 2 before launching into a wave 3 that breaks the $23 soft barrier, consolidates again for a wave 4 and finally finishes wave 5 around $26.

The $26 target is a confluence of a major resistance/support level, the 50% Fib retracement of the larger wave 3 of the first cycle, as well as the 2.786 band of a modified schiff Fib pitchfork (a FibFork, if you will). The pitchfork is not shown on the chart to keep it clean.

Long story short, we need to see the following: A 4h close above $20.70 (to close above EMA's) followed by a breakout and 4h or 1D close above $23. Once that happens, its pretty clear sailing to $26.

Penafian

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