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Virgin Galactic Stock: Keep SPCE stock on radar, Earnings ahead

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  • Virgin Galactic stock consolidating near 52 week low ahead of earnings.
  • SPCE stock price fell 10.12% in the previous month.
  • Virgin Galactic Holdings (NYSE: SPCE) to release quarterly earnings on May 9, 2023.

Virgin Galactic stock fell 10.12% in the previous month and corrected 45% approx from the recent swing high at $6.60. SPCE stock price is in a strong downtrend and slipping down by forming lower lows swings. It rejected the 200 day EMA and also trading below the 50 day EMA showcase positional trend is in downward direction. However, the prices are near to the 52 week low and short covering rally may trigger anytime. 

Virgin Galactic stock is forming a double bottom bullish pattern. It has created a hope for the bullish trend reversal but confirmation will come when buyers succeed to break out of the $4.28 hurdle. 

Virgin Galactic stock price closed the previous session at $3.64 with an intraday rise of 3.70%. The market capitalization stands at $1.02 Billion. Virgin Galactic Holdings (NYSE: SPCE) is set to release the quarterly earnings on May 9, 2023. Market analysts estimate an EPS of -$0.52 and revenue estimate are $1.063M. 

If the company succeeds to meet the estimates then it will increase the probability of short term pull back. However, if the company fails to meet the estimates then price might again test the 52 week low or it may remain in consolidation.

Short squeeze possible in Virgin Galactic stock?

NYSE: SPCE daily chart by TradingView

Virgin Galactic Stock price tried multiple times to break the $6.00 hurdle. Sadly, it got rejected and witnessed profit booking from the higher levels. Slow and steady prices declined and eroded the gains of the past months. 

Presently, SPCE stock is near the demand zone and if buyers defend $3.00 the price might try to test the higher range at $4.28. On the other hand, if the price drops below the $3.00 support then bears may try to drag it down to a fresh yearly low. The technical analysis suggest SPCE stock price is in bears grip and any short term pull back will have low probability of sustaining the higher levels.

SPCE stock price on weekly time frame 

SPCE stock price forming a bullish hammer candle on the weekly timeframe. However, till price trade below $4.28 it will lack momentum on the higher levels. If the short covering triggers and price break the $4.28 hurdle with the high volume. Then buyers may try to test the 200 day EMA. 

The technical indicators like MACD had generated a positive crossover and histogram bar is on rise. It indicates mild bullishness. The RSI at 48 sloping upward denotes strength and price is trying to test the neutral territory.

Conclusion

Virgin Galactic stock price corrected 45% from the swing low and eroded the gains of past few months. SPCE stock price is in downtrend and trading near to the 52 week low. The quarterly earnings are scheduled next week and wild up-move or down-move is possible after earnings. Technical analysis suggests, SPCE stock price is in bear grip and any short term bounce will have low probability of sustaining the higher levels. 

Technical levels

Resistance levels : $4.28 and $5.00

Support levels : $3.00 and $2.00

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss. 

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