SPCE Virgin Galactic Where Are The Buyers?
This is a daily chart of SPCE. As you can see, SPCE is currently within an uptrend which is best defined by a large channel.
The most ideal entry would be around $23-$25 as this would be the bottom of the channel, but that doesn't mean the price will drop that low.
As we've seen in the past, buyers have stepped in at the 30 Week Moving Average which is the green moving average that the price is currently at. The 200 day MA (blue) would also be another good entry as it has supported the price before in the past.
There are a lot of people looking to invest in SPCE, likely a lot more than before now that Virigin has had a successful flight, but panic sellers, shorts, and Virgin diluting shares has brought down the price quite a bit from it's peak and are currently in control of the price action.
A more aggressive investor would want to get in somewhere around $34 (30W MA) while an investor who feels they can take it or leave it with this stock would find the best entry at the bottom of the channel.
From the calculations I've seen (I have not double checked them myself), the dilution should only negatively impact the price about 4-6% which means the majority of the selling is being done by panic sellers and shorts. I would assume SPCE is finished with the dilution of shares and I believe we should see confirmation from them soon stating this as well.
I personally believe SPCE will one day return to the top of this channel but I have no inclination on when that will be. Since the top of the channel is an ascending trend line, the price target increases with time.
The most ideal entry would be around $23-$25 as this would be the bottom of the channel, but that doesn't mean the price will drop that low.
As we've seen in the past, buyers have stepped in at the 30 Week Moving Average which is the green moving average that the price is currently at. The 200 day MA (blue) would also be another good entry as it has supported the price before in the past.
There are a lot of people looking to invest in SPCE, likely a lot more than before now that Virigin has had a successful flight, but panic sellers, shorts, and Virgin diluting shares has brought down the price quite a bit from it's peak and are currently in control of the price action.
A more aggressive investor would want to get in somewhere around $34 (30W MA) while an investor who feels they can take it or leave it with this stock would find the best entry at the bottom of the channel.
From the calculations I've seen (I have not double checked them myself), the dilution should only negatively impact the price about 4-6% which means the majority of the selling is being done by panic sellers and shorts. I would assume SPCE is finished with the dilution of shares and I believe we should see confirmation from them soon stating this as well.
I personally believe SPCE will one day return to the top of this channel but I have no inclination on when that will be. Since the top of the channel is an ascending trend line, the price target increases with time.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
