Virgin Galactic – SPCE stock price is down by 40% in the current month and trading near its 52-week low. The prices are falling down by forming lower lows candles and no signs of recovery are visible.
SPCE stock faced rejection from the 50-day EMA showcase downtrend and sellers continued the dominance on the higher levels.
On a higher time frame, Virgin Galactic stock has formed a double-top bearish pattern. The prices also broke down the neckline support which invites further decline.
SPCE stock price has gone far away from both the EMAs so a temporary pullback may trigger any time to test the EMA. However, any short-term pullback rally will face difficulty in holding the higher levels.
Previously, Buyers tried multiple times to break out of the 50-day EMA. However, due to the strong presence of sellers, prices were rejected and continued the fall.
SPCE stock price closed the previous session at $2.54 with an intraday decline of -1.55%. The market capitalization stands at $932.53 Million.
Is Alert Short Squeeze Possible in SPCE Stock?
NYSE: SPCE daily chart by TradingView
SPCE stock price is quite volatile and speculative activities are also high. At the beginning of August, share prices dropped below the $4.00 support. It triggered the panic sell-off and short-term bulls exited.
SPCE stock looks highly oversold and short sellers are highly active. This short squeeze might trigger to clearing out of the existing shorts. Till Virgin Galactic stock trades below $4.00 prices are expected to remain in bear grip.
The technical analysis suggests SPCE shares price is in a strong downtrend and speculative activities are high. Therefore, it’s better to avoid building up any positions in this stock.
Virgin Galactic Stock is bearish on a Multiple Time Frame
Virgin Galactic Stock is forming a bearish pattern on multiple time frames. Short-term buyers look reluctant to enter into a long trade in fear of further sell-off.
The MACD curve generates a negative crossover and the histogram bar is red. It indicates bearishness and seller dominance.
The supertrend indicator shows that the short-term and long-term trend is in a downward direction. The RSI at 27 denotes prices are in oversold territory and a temporary relief rally is possible.
Conclusion
Virgin Galactic – SPCE stock price is down 40% in the current month. The share prices are highly oversold so a short-term pullback rally is possible. The technical analysis suggests SPCE stock price is bear grip so it’s better to avoid building up any position.
Technical levels
- Resistance levels: $3.61 and $4.29
- Support levels: $2.46 and $2.00
