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- 1 SPCE stock price rejected the 200 day EMA and slipped below 50 day EMA showcasing a downtrend.
- 2 SPCE stock is down by 22% on a monthly basis, forming a bearish pattern.
- 3 Virgin Galactic (NYSE: SPCE) loss widens.
SPCE stock price fell 7.40% this week and is down by 22% on a monthly basis indicating a downtrend. SPCE stock broke down the important support level of $5.00 which has created a concern for its long term investors.
SPCE stock price closed the previous session at $4.63 with an intraday loss of -7.4% and market capitalization at $1.30 billion. Virgin Galactic Holdings Inc (NYSE: SPCE) is a spaceflight company founded by Richard Branson. The company focuses on the development, manufacture and operations of the spaceships. It is also involved in ground and flight testing and post-flight maintenance of spaceflight systems.
Virgin Galactic (NYSE: SPCE) released its fourth quarter results on February 28th, 2023, in which it reported EPS of -$0.55 and revenue of $869K. Company failed to meet the EPS estimate by 6.77% but its revenue is up by 153.64% estimates. However, SPCE reported a net loss of -150.82M which showed losses getting widen up in every quarter.
Will SPCE stock price retest the 52 week low?
SPCE stock reacted negatively after the earnings and fell by 17% on a single day which indicates that it has disappointed the expectation of the investors. At the beginning of January, SPCE stock price took a U-turn from the 52 week low and showed a sharp upward momentum. Later, bulls managed to push the price above the 50 day EMA which created a hope for the bullish trend reversal and prices rallied 100% approx in the period of one month. However, the rally halted at $6.64 and prices failed to give the follow up momentum. At the mid of February, SPCE stock again attempted to break $6.64 but sadly 200 day EMA acted as a huddle and prices reverted in a downward direction.
SPCE stock price has broken down $5.00 support and if downward momentum continues then it might retest its 52 week low at $3.25. However, $4.00 and $3.25 will act as an important support for the bullish traders. The technical indicators of the SPCE stock like MACD had generated a negative crossover indicates bearishness may continue for some more time. The RSI at 39 sloping down denotes prices are near to the oversold zone.
Conclusion
SPCE stock price down by 22% on a monthly basis and trading below the 50 day EMA showcase downtrend. Virgin Galactic stock (NYSE: SPCE) losses are also increasing every quarter which has created concern for its long term investors. The technical analysis of the SPCE stock suggests that prices are into bear grip and the probability of retesting 52 week low is high.
Technical levels
Resistance levels : $6.64 and $8.00
Support levels : $4.00 and $3.26
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
