Virgin Galactic - SPCE outlook showing signs of strength
Updated
Looking a the SPCE chart from a birds eye view it shows the company is overdue for a run. For months it's been trading sideways. It almost looks like it's break out of an inverse head and shoulders pattern. Until recently a spike caused by bullish news sending the stock from around 4.04 to 6.50.
On the run up it rejected the 6.50 price and came back mid day to the 4.50 level. The Fixed range volume profile showed from 4.04 to 6.50 on the initial the point of control was shifted to 6.50 where most volume was traded at the top. It showed a new level of support based on the visible range volume profile after it was rejected in the 4.81 - 4.63 range which to me was a buy zone. Even if it drops a little bit im okay with the risk to reward ratio with calls out to July 7th.
I wanted to get in it but I wasn't going to buy in at the top. The visible range volume profile showed me that most the volume came from these price levels. The fixed So I took the trade and look for a momentum run up in anticipation of the commercial flight between june 27th and june 30th.
The blue horizontal lines represent my take profit levels with the first retesting the 6.50 level. If price moves agressive I'm looking for it to close gaps from the prior months. The closer to launch date I can see it running up because people don't want to miss the run and a lot of buying pressure should be coming in up to these dates. Not to mention there's another flight shortly after in July I believe if there are no delays.
We will see how this plays out. My calls don't expire until July 7th after the first flight if there are no delays.
Thanks for taking the time out to read this.
Trade responsible,
Jay
#TradeTheWave
On the run up it rejected the 6.50 price and came back mid day to the 4.50 level. The Fixed range volume profile showed from 4.04 to 6.50 on the initial the point of control was shifted to 6.50 where most volume was traded at the top. It showed a new level of support based on the visible range volume profile after it was rejected in the 4.81 - 4.63 range which to me was a buy zone. Even if it drops a little bit im okay with the risk to reward ratio with calls out to July 7th.
I wanted to get in it but I wasn't going to buy in at the top. The visible range volume profile showed me that most the volume came from these price levels. The fixed So I took the trade and look for a momentum run up in anticipation of the commercial flight between june 27th and june 30th.
The blue horizontal lines represent my take profit levels with the first retesting the 6.50 level. If price moves agressive I'm looking for it to close gaps from the prior months. The closer to launch date I can see it running up because people don't want to miss the run and a lot of buying pressure should be coming in up to these dates. Not to mention there's another flight shortly after in July I believe if there are no delays.
We will see how this plays out. My calls don't expire until July 7th after the first flight if there are no delays.
Thanks for taking the time out to read this.
Trade responsible,
Jay
#TradeTheWave
Trade active
Full in depth breakdown of my trade on my YouTube channel. I’m currently up 100% + return at the moment. Rocket power.. if you’ve been following you can see we broke out today on a 25%+ break out from my spotted buy zone. It’s holding up nicely in anticipation of the upcoming flight. I still currently have an open position with 28 contracts expiring July 7th past the date. I didn’t exactly hit my target but I’m up over 100% on my option calls.
I will continue to feel out the play until I feel it is time to sell. My immediate price target is 6.50 which almost was hit the first day of the week. We’re not even close to the first commercial flight yet.
I will continue to feel this out. Indicators and volume still seem bullish to me.
Trade Responsibile,
Jay
#TradeTheWave.
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