Virgin Galactic Analysis for NYSE:SPCE by Sleesc2

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Virgin Galactic has a history of large price

spikes leading up to significant flights.

In February, anticipation for the SpaceShipTwo

test flight corresponded to a 170% increase in

price from January lows. This price action was

preceded by a bullish break above Ichimoku

Conversion and Base lines, a golden cross on

the MACD , and a significant bollinger_band

compression (all on the 10 timeframe).

In July, anticipation for Richard Branson’s

flight corresponded to a 300% increase from

May lows. This price action was preceded by

similar bullish breaks as the February run up.

The upcoming Unity 23 flight was

unfortunately delayed, pushed from late

September – early October to around mid

October due to possible component issues

and an FAA inquiry. However, should these

issues be cleared up, we may expect a

massive run to begin soon leading up to the

mid October flight.

We have solid support at $24, but the current

price region of $25 is an adequate region to

start accumulating. Below this, we have a gap fill at $21 and at $17. If you’re waiting for a clear
bullish signal, you can wait for news about

SPCE’s next flight to come out. I expect a

massive spike whenever Virgin Galactic clears up their component investigation or the FAA

situation. Good news like this can easily

deafen the overall market trend, sending this

stock into space. Other notable examples of

recent stocks that have defied the S&P 500

pullback include UBER and LCID.

So far, SPCE managed to break above several down trends (originating from the July peak). The bollinger bands are in a relatively compressed state, suggesting movement in the near future. Bullish indicators include a golden cross on the MACD and a break above the blue ichimoku conversion line. Stochastics are heading up to the overbought region while the RSI is near neutral, angling itself upward.

Price target at around the $30 gap fill. If we break past this, then $50, in accordance with

the resistance trend line formed by the

previous two peaks in February and July.

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