Rocket Lab Corp (RKLB) shares are sliding Friday, down 6.67% to $72.04, as the space sector takes a collective breather after what's been a pretty wild year-end rally.
The Rally and the Pullback
Space stocks have been on fire lately, powered by a potent mix of speculation about a possible SpaceX IPO in 2026 and President Donald Trump's new executive order designed to supercharge the industry. But after that kind of run, a pullback was probably inevitable.
The combination of Trump's order and the appointment of billionaire Jared Isaacman to lead NASA has injected genuine excitement into the sector heading into the new year. Andrew Chanin, CEO of Procure Holdings (UFO), explained to MarketDash that placing influential figures in key positions can "pull different levers" that push momentum in a particular direction.
Chanin highlighted NASA's Artemis program, which aims to return humans to the Moon, as a major priority for Isaacman. He also pointed out that the U.S. is putting greater emphasis on "defense national security," a shift that could reshape future investment and government incentives for space companies.
According to Chanin, the administration's renewed focus on space, combined with the potential for a new defense-driven "space race," could create sustained long-term tailwinds for the entire sector.
What the Charts Are Saying
Rocket Lab finds itself in a tricky technical spot right now. The stock is trading below key moving averages and showing signs of bearish momentum, which should give traders pause.
The RSI sits in neutral territory, not screaming overbought or oversold at the moment. But it's worth noting that it entered overbought territory on December 19, which suggested the stock might be due for a breather after that spike.
The MACD is below its signal line, reinforcing the notion that momentum has tilted to the downside. If this pattern continues, the stock could face additional pressure in the near term.
Key support sits at $58.50, while resistance is at $74.00. If Rocket Lab tests that support level, it could signal either a trend change or continuation. A breach of resistance, on the other hand, might indicate a potential reversal.
Here's the thing though: despite the near-term softness, RKLB has still delivered an eye-popping 151.30% gain over the past year, which speaks to strong longer-term sentiment. But with the stock currently at 87.5% of its 52-week range, how it behaves around these support and resistance zones becomes increasingly critical.
The swing high from October 15 and the 52-week high from December 24 show that the broader trend has been decidedly upward. But the stock's inability to hold above the latest breakout level suggests the market is still digesting those substantial gains.