By
Godfrey Benjamin
August 10th, 2023
In the pre-market today, SPCE stock is up 6%, trading close to $60. Virgin Galactic shares are expected to grow further and reach new levels.
On Friday, Virgin Galactic Holdings Inc (NYSE: SPCE) stock surged 11.5% in the pre-market after the Federal Aviation Administration granted approval for Virgin to fly paying customers into space. It’s the first such approval granted by the FAA, which follows a successful test flight by Virgin Galactic in May this year. Performance data shows that Virgin Galactic has of late been doing well, but the stocks were doing astronomically well late last week, Friday, gaining close to 40% and reached the price level of $55.91.
In the pre-market today, SPCE stock is up over 6%, trading close to $60. According to TheStreet Investing, the $1 trillion infrastructure deal is hugely responsible for the company’s stellar performance.
Short-Term Expectations
With the holding Virgin Galactic’s meme stocks, the likelihood of a short squeeze manifesting is high. Other stocks including AMC Entertainment Entertainment Holdings Inc (NYSE: AMC) and GameStop Corporation (NYSE: GME) were still trending on Friday but Virgin Galactic was the point of focus on that day. Currently Virgin Galactic has all the buy indicators that bulls were looking for, and its all-time high is thought to be not far away. But can the stock outshine other meme stocks that have been in the spotlight and continue excelling?
Technical Analysis of Virgin Galactic (SPCE) Stock Trading Chart
Virgin Galactic is one stock that mostly follows technical analysis, and it can be compared to Tesla Inc (NASDAQ: TSLA) in terms of obeying technicals. Bringing the SPCE share prices into perspective, you’ll notice that it has been trading at around $15 but the rebounded to the $24 level. While the rebound was, by all means, a solid rally, bouncing back was no mean feat.
Over a couple of past quarters, the trading level (around $15) has been a key point of focus for market watchers. Once the $15 successfully held support, Virgin Galactic’s bull run had just begun. After the bull run was initiated, the 10 day MA indicator showed a pennant consolidation that further thrust the stock to $41.66. On Wednesday and Friday, the stock continued trading at the $41.66 level, which appeared to be a resistant point. However, with the FAA news, Virgin Galactic rose from the 61.8% retracement level to the 78.6% retracement levels, and continued trading at around that area.
The good performance wasn’t achieved by fluke if past data is anything to go with. The current performance further indicates that Virgin Galactic is a stock to watch out for. The 78.6% retracement level acted as a resistant point earlier in the year, February, and it would definitely indicate a bullish trend forming if the stock holds above that level. On the other hand, a bearish trend would be seen to be forming once again if the retracement level holds. For bulls, they anxiously wait to see if the stock can achieve $60 and even reach its all-time high, $62.80.