SPCE - Time to reach new All Time Highs!Hello guys, thank you all for tuning in!
I am going to divide the analysis into 4 parts, so we can go deeper into the trading idea!
Technicals:
- The price completed the Cup and Handle pattern on the 1H chart and went from 34$ to 44$ and even higher.
- SPCE broke through the Daily Triangle shown on the chart with enormous volume and the next target is 50$.
- The pullback is to be expected to 40$ - 30$. The price has soared too fast! The RSI is overbought on the 1H, 4H, and Daily charts and we have a Divergence.
- After the pullback, the Daily Triangle pattern has a target of 70$.
Fundamentals:
- ARKX is the new Space ETF, created by Cathy Woods. It had a huge contribution to the jump in price.
- There are many rumors about SPCE being included in the ETF. Cathy has been aggressively increasing her position and believes in the company Long Term.
- SPCE is most likely going to be in the top 3 positions of ARKX, so this will drive the price even higher.
- The problem with the engine has been identified and is going to be taken care of. A new test flight is to be expected in February.
- There are going to be a few more test flights driving the price up.
- Somewhere between March and April, Sir Richard Branson is going to fly into space and be the first Space Tourist. This will be huge for SPCE, the target will be 100$.
Conclusion:
Virgin Galactics is an extraordinary company. They are creating a whole new industry of Commercial Space Travel, so the returns, if they succeed, are going to be enormous.
This stock in my opinion is an extremely Long-Term investment. I would say it is a speculative stock and right now, they are on the right path!
My price predictions:
- 1 year: 150$ - 200$
- 3 years: 300 - 500$
- 5 years : 500$ - 1000$
This is not a financial advice, please do your own DD. I would appreciate the like and follow as this will keep me motivated to post more trading ideas!
Feel free to share your trading ideas or add something to this idea in the comments.
See you guys on the next trading idea, take care!
