Virgin Galactic and Catalysts
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 1D 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. 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.
Price target at around $50, in accordance with the resistance trend line formed by the previous two peaks in February and July.
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 1D 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. 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.
Price target at around $50, in accordance with the resistance trend line formed by the previous two peaks in February and July.
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