Let's see! Weekly charts shows that we are right at the trendline and the bounce we saw today could be a bull run continuation signal.
But, on daily we can adjust the trendline and argue that price has not bottomed yet and has another 7% to drop before any real reversal. For a reversal to happen, we need to follow the volume profile drawn on the daily chart for the bearish trendline to breakout with sufficient support.
On daily you can also see the volume for Friday's sell-off, which is relatively larger than any other day in the past two months. That could be interpreted as the selling climax for our bullish scenario.
Bullish Indicators:
Bearish Indicators:
Final call: Leaning Long
But, on daily we can adjust the trendline and argue that price has not bottomed yet and has another 7% to drop before any real reversal. For a reversal to happen, we need to follow the volume profile drawn on the daily chart for the bearish trendline to breakout with sufficient support.
On daily you can also see the volume for Friday's sell-off, which is relatively larger than any other day in the past two months. That could be interpreted as the selling climax for our bullish scenario.
Bullish Indicators:
- Bounce off of Weekly trendline
- Daily RSI near 30
- Weekly chart shows similar volume changes in the past that lead to a new bull run
Bearish Indicators:
- MACD cross down
- Daily trendline points to another 7% drop
- There is no near term catalyst for Virgin Galactic
Final call: Leaning Long
Market Maven: Never Miss a Move.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Market Maven: Never Miss a Move.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Disclaimer: This is not a financial advice and all posts are for educational purposes only.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.