TRADE SETUP

Where do we stand fundamentally?

Rocket Lab announced the "Full Stream Ahead" mission for BlackSky Technology Inc. (NYSE: BKSY), set to launch on May 28, 2025, from Launch Complex 1 in New Zealand. This mission, the second of four booked for BlackSky in 2025, will deploy next-generation (Gen-3) satellites into a 470 km mid-inclination orbit using the Electron rocket. It marks Rocket Lab’s seventh Electron launch of 2025 and 65th overall, bringing their total satellites deployed to 226.

Rocket Lab reported Q1 2025 revenue of $122.6 million, a 32% year-over-year increase, slightly exceeding estimates. However, the company posted a $0.12 per share loss, missing the consensus estimate of -$0.107. Q2 2025 guidance projects revenue of $130–$140 million (below the $137 million consensus) and an adjusted EBITDA loss of $28–$30 million, worse than the expected $21 million loss. This led to an 11% stock price drop following the earnings announcement.

RKLB is reaching an upside resistance of 30.26, and we need to see a break above this resistance for a continuation higher.

For the rally to continue, we need a sustained breakout above 30.26. I am inclined towards a short-term trade entry, as the overall market sentiment remains fragile, and we could see one more downswing within what could be a bullish flag. If you are not already long, do not chase and wait for a 22 support test.

_{I am taking a near-term short-trade entry with a SL above 33 to target 21. You can buy put options as well. If the trade is stopped, reverse it to a long trade entry.}