Rocket Lab USA Inc (NASDAQ:RKLB) shares are trading lower Wednesday morning. This follows a volatile Tuesday session where the stock rose 10% before sliding.
Rocket Labs filed for a potential common stock offering of up to $1 billion after the closing bell.
Massive Capital Raise Details
The aerospace leader entered into an equity distribution agreement for the sale of common stock.
Rocket Lab intends to sell these shares periodically. This move aims to bolster the company’s balance sheet for long-term initiatives.
The filing comes despite a solid cash reserve. Rocket Lab reported $828.66 million in total cash and cash equivalents as of Dec. 31.
Technical Analysis
Rocket Lab is trading 6.6% above its 20-day simple moving average (SMA), but 1.6% below its 50-day SMA, showing near-term strength that’s running into an intermediate trend ceiling; it’s also 14.1% above its 100-day SMA, keeping the bigger uptrend intact.
Shares are up 337.10% over the past 12 months and are positioned closer to their 52-week highs than lows within the $14.71 to $99.58 range.
RSI is at 58.86, which sits in neutral territory. Meanwhile, MACD is at -0.5286 versus a signal line of -1.2821.
- Key Resistance: $78.00
- Key Support: $64.00
RKLB Price Action
Rocket Lab shares closed Tuesday up 10.21% at $78.59. As of Wednesday morning, Rocket Lab shares are down 3.68% at $75.70 in premarket action, according to Benzinga Pro data.
Image via Shutterstock
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