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Jake Wujastyk, founder and CEO of TrendSpider, expressed concern that a textbook downside scenario in RKLB would not be ideal for those holding long positions.
Wujastyk added that he hopes this scenario does not happen as commonly expected.
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Wujastyk has recently highlighted other technical patterns in the market. He noted that TLT's extreme oversold RSI and bottom doji formations have functioned as strong reversal signals over the past two years. In a separate commentary, he pointed out a large volume shelf for NBIS on the weekly chart, indicating a higher probability of an upward move.