What Rocket Lab's Chart Says After Shares Fell 45%+ in a MonthRocket Lab CorporationBATS:RKLBmoomooSpace firm Rocket Lab RKLB rose some 425% over 12 months and 3,400%+ over 24 months to an all-time high a month ago -- then proceeded to sink 45%+ in four weeks. What can its chart and fundamentals tell us now? Let's look: Rocket Lab's Fundamental Analysis RKLB has pulled back even though there's been mostly positive news flow recently for the company. First, Rocket Lab announced last month that it won a $90 million contract from the U.S. Space Force to design, manufacture and operate two geostationary satellites that will host the Heimdall space domain awareness payload. That represented RKLB's first satellite-production program for geostationary orbit, with Rocket Lab set to serve as the program's prime contractor and end-to-end mission provider. Then we found out on June 11 that Rocket Lab would be moving into the Nasdaq 100 NDX on June 22. That means Nasdaq-100-based ETFs and mutual funds have to buy and hold the stock. A few days after that, Keybanc analyst Michael LeShock upgraded RKLB to "Overweight" (a buy equivalent) from "Sector Weight" (a hold equivalent) while initiating a $135 price target. LeShock is rated at five stars out of a possible five by TipRanks, with a 60% success rate over two years and a 77% average return. Still, all of those apparent positives haven't been enough to prevent Rocket Lab's pullback since the stock hit its $151 all-time intraday peak on May 27. Shares were trading at $80.39 Thursday morning, down 46.8% from their record high. The company's next major catalyst could come in early August, when markets expect Rocket Lab to report Q2 results. While the Street is forecasting 60% year-over-year revenue growth for the period, analysts don't expect the firm to reach profitability until 2027. Rocket Lab's Technical Analysis Next, let's look at RKBL's chart going back some 4-1/2 months and running through Tuesday afternoon (June 23): Readers will first see that Rocket Lab broke out of a falling-wedge pattern of bullish reversal that worked to perfection early this past April. The shares spiked to apex at their aforementioned $151 all-time peak on May 27. At first, I thought the stock was perhaps next developing a head-and-shoulders pattern of bearish reversal toward the chart's right (readers can easily see why), but the right-side shoulder never materialized. Still, the chart shows that once RKLB lost its 21-day Exponential Moving Average (or "EMA," marked with a green line), shareholders (likely swing traders) sold the stock every time at that line during every attempted rally back. But the real heartbreaker for shareholders was the stock's recent loss of its 50-day Simple Moving Average (or "SMA," marked by a blue line at $105.20 above). If Rocket Lab can't quickly regain that line, risk managers will likely force a number of portfolio managers to reduce their exposure to the name. That could put the stock's 200-day SMA (the red line at $74.30) into play, as that's where portfolio managers might regroup to make a stand. Meanwhile, Rocket Lab's Relative Strength Index (the gray line marked "RSI" at the chart's top) has weakened, but remains nowhere near entering into oversold territory. Still, the bears clearly have control of the stock's daily Moving Average Convergence Divergence indicator (or "MACD," denoted by blue bars, a black line and a gold line at the chart's bottom). The histogram of the 9-day EMA (the blue bars) is now well into negative territory, which is a short-term bearish signal. In addition, the 12-day EMA (the black line) has been running below the 26-day EMA (the gold line) since early June. That's bearish, too -- especially with both lines more or less in negative territory. Should the Bulls Have Any Hope? That said, there's a sliver of something for the bulls to cling to as the wolves circle the stock baring their teeth -- the possibility that RKLB is trying to develop either a cup pattern or a cup-with-handle one. Both are patterns of bullish reversal. The key here is to watch the 61.8% Fibonacci retracement level of Rocket Lab's late-March-through-late-May rally. Marked with one of the gray lines in the gray field above, that 61.8% Fibonacci level sits a little below $93. That's the support level that Rocket Lab bulls might be grasping for. (Moomoo Technologies Inc. Markets Commentator Stephen "Sarge" Guilfoyle was long RKLB at the time of writing this column.) This article discusses technical analysis, other approaches, including fundamental analysis, may offer very different views. The examples provided are for illustrative purposes only and are not intended to be reflective of the results you can expect to achieve. Specific security charts used are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. Moomoo and its affiliates make no representation or warranty as to the article's adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct. The Analyst Ratings feature comes from TipRanks, an independent third party. 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