SPCE trade ideas
Who doesn't like space?Virgin Galactic NYSE:SPCE can be an interesting stock to buy soon. Caution should be advised because of potential hype that comes with this kind of stock (no revenue at this time).
Technically, we see a detachment of the mode at $16.82 as of last week. This fires an uptrend that lasts well into Q1 of 2021. Interestingly, NYSE:SPCE is planning to send 4 employees into space in early 2021.
You could open a small position right now and add in the buy zone, marked with the green zone. I would not risk more than 1% of your portfolio. Stoploss under the low of the mode at $14.21.
To be complete, competitors are Blue Origin (by NASDAQ:AMZN ) and SpaceX (by NASDAQ:TSLA ).
PS:
Daily timeframe shows Buy zone has already been reached. A new daily mode projects price to reach $23.20 within 4 days.
$SPCE How To Best Position Yourself For Future DevelopmentsThis is a follow-up post from my previous $SPCE analysis on October 4th titled "$SPCE Love Space Travel, But You May Want To Wait Before Buying".
Technical Analysis
In my previous post, when $SPCE was priced at $20.77 before the moon towards the October 20th's Highs of $24.36, I talked about how at that point in time, $SPCE had 2 unfilled gaps at $24.02 and $16.43 respective, despite having a history of closing any of its gaps. Within that post, I also gave 2 possible scenarios that I foresaw would occur leading up to the October 22nd's window opening for Virgin Galactic's next crewed spaceflight test. If you are interested to see what exactly my previous analysis was about, you can refer to my previous post which I have linked down below in the 'Related Ideas' section.
Update 1: Since the post on October 4th, we saw $SPCE prices staying above the Symmetrical Triangle chart pattern after breaking out of it and re-testing the Slope of Lower Highs on October 13th. After rejecting the Slope of Lower Highs, it continued bulling and eventually filled 1 of the 2 unfilled gaps at $24.02 on October 20th. However, after filling the gap and reaching the Highs of $24.36, we saw an immediate rejection within the same 4H candle, creating a Shooting Star candlestick pattern. Later on during the session, we saw prices rejecting all the way down and closing at $20.44 for the day.
Update 2: What caused this huge 16% decline from the peak of $24.36? There are 2 reasons for this. The first reason is a technical one based on what I have mentioned earlier. After closing the $24.02 gap, $SPCE entered into a strong resistance zone of $24.26 to $24.85. On top of this, because of the meteoric rise, a Regular Bearish Divergence was also created. These technical factors combined created a retracement cum rejection from the strong resistance zone.
Update 3: However, based on this factor alone, it does not justify a 16% decline from the peak. This brings me to my 2nd reason which is short-seller Jim Chanos of Kynikos Associates' comment on the space sector. If you aren't aware of what happened, at an investor conference, Chanos expressed his bullishness on the space sector but later retracted his statement by saying that he was joking. This, combined with the technical factor I mentioned earlier, created a 16% decline from the peak of $24.36.
Entries, Price Targets, Stop Losses
Because of the highly speculative nature of $SPCE plays at this stage due to so many uncertainties surrounding it and so many things that can go wrong, I can't give an exact price target or stop loss at this juncture. But what I can say is that, if something does go wrong, even the most minute incident that is unfavorable for $SPCE, it is almost certain that we will see $SPCE back in the $16.43 range to close the last unfilled gap. What I can also say is that if you want to trade or invest in $SPCE - don't go all-in yet . The approach to take is to have a small enough position in $SPCE so that you feel that you have some skin in the game but not so much position such that even if $SPCE falls to the $14.00 to $16.00 range, you can still feel emotionless. Personally, I have taken this approach as well, where I have an entry at $20.91 and is mentally prepared to stay emotionless for both a meteoric crash towards $14.00 as well as a meteoric rise towards $30.00.
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Heading back downWas playing yesterday and today with Elliot and i didnt like it.... :|
I think we are going back to the 15 or 16 price range soon.
SPCE moves, good strangle playSPCE up & down movement is great for a strangle play. Historic support and resistances. Good luck and happy trading friends.
SPCE GETS PRICE UPGRADE TO $35 TARGET (LONG SET UP)TITLE- BUY SPCE ON PULLBACK
Asset-Stock
ENTRY 1 19.90
ENTRY 2 16.90
SL 13.90
TP.1 24.90
TP.2 29.90
TP.3 34.90
Shares of Virgin Galactic Holdings (SPCE) jumped 3.4% in premarket trading Monday, after a bullish call from Cowen analyst Oliver Chen, saying the spaceflight services company is the way to won the "final luxury frontier." Chen initiated coverage of Virgin Galactic with an outperform rating and stock price target of $22, which is 26% above Friday's closing price of $17.46. " is uniquely positioned to benefit from the growing consumer interest toward luxury experiences, especially among high-net-worth individuals," Chen wrote in a note to clients. "We believe a substantial growth opportunity lies ahead with the commercial spaceflight business, which already has 600 reservations, and the development of high-speed point-to-point travel." He said a Cowen survey indicated there was a large addressable market for commercial spaceflight, with high long-term engagement and awareness. The stock has rallied 51.2% year to date through Friday, while the S&P 500 has advanced 8.6%.
SPCE potential pop here above 23.40SPCE has been working this range here for a while. A break of 23.40 could
cause some short covering a a decent push to 26. Currently 22% short float.
SPCE to space?SPCE has gone up almost 30% in the last 4 weeks and I believe it will beat the bear market and continue bullish for a long time. According to my count we're now just beginning wave 3 which is usually the biggest wave. SPCE is not profitable yet but, they will most likely cater to their first customers by years end and will do something revolutionary (space tourism). Good luck investors.
Virgin Galactic w42 2020. Wait for trendFor now its unclear trend.
Volumes are low, hard to define correct actions.
Stock jus to follow news
Feels like a good spot to buy SPCE calls Sitting above support after a triangle breakout feels like a lot of upward potential
Virgin galactic : fibo level to buy at a good price Virgin galactic : fibo level to buy at a good price : gann box with fibo to check where to buy, color adapted
$SPCE Virgin Galactic - Cup & Handle 20%+ Upside$SPCE Virgin Galactic - Cup & Handle 20%+ Upside
For confirmation, wait for a close >$22.40 (likely today or Monday)
Target: $27.50 by early November
Additionally, we saw some bullish options activity today:
$2.1M of $23.00 strike (ATM) 10/23 calls traded (5x OI)
$800K of $23.50 strike (OTM) 10/23 calls traded (13x OI)
$700K of $24.00 strike (OTM) 10/23 calls traded (4x OI)
VIRGIN GALACTIC HLDGS Opportunity DailyHey people, VIRGIN GALACTIC HLDGS is in a bullish configuration with low buying volume. It is very plausible that it goes to the middle of the median. VIRGIN GALATIC HLDGS will seek to close the bearish gap but not enough strength at the moment.
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SPCE Pennant - 30MSPCE forming multiple support within the pennant and resistance nearing in. Could be used as a short play when price hits upper zone or long if it breaks with own due diligence.
