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- 1 VSAT stock price: The share price is near the 2009 level, so find out whether it is the time to buy for the long term.
- 2 The Stock price has fallen due to a crucial announcement from the management.
- 3 The current trend is bullish but a rejection is near. See the prediction below.
The California-based Com-tech company, ViaSat, Inc. (NASDAQ: VSAT) provides communication technologies and services. The company operates through three business segments which include, satellite Services, Commercial Networks, and Government Systems.
Why VSAT Stock Price is Falling?
On July 13th, Viasat announced that there was a problem with the deployment of the reflector of its ViaSat-3 America satellite, which may negatively impact its performance. That is said to be the company’s most advanced satellite technology yet.
Instead of reassuring investors, the company’s management pointed the finger at the reflector supplier for the issue. This news, when floated in the market, caused the VSAT stock to crash down to earth’s core. On July 13, the stock made a gap-down opening and the investors lost about 36% of their money in a single day.
Bad Quarter Good Quarter
Since entering into that quarter 2 of 2022, the company started seeing negative growth in its revenues. Although the management attempted to exclude it from the gross income for the first quarter, it eventually became a negative number as well. However, in the recent quarter that ended in June, the firm finally saw a sales growth of 15% (year on year). ViaSat is heavily reinvesting, resulting in negative operating income.
Technical Analysis and Prediction of the VSAT Stock Price
At the press time, the VSAT stock price is trading at the level of $21.4, which is near the low that was made during the market crash of 2009. The immediate resistance from this point is $28.6, while the immediate support is at $15.3. The underlooked resistance could be the 50-day exponential moving average line. Currently, at $22.7, this is already showing some price rejections as the VSAT stock price came near it.
A Gap for the Bulls to Fill
There is a huge liquidity gap on top past the first resistance level. Therefore, it is likely that the VSAT bulls will come above to fill it. However, looking at the RSI, which is already near its overbought level of 70, it is likely that before breaking the resistance, some minor correction will be seen in the stock price.
The price prediction for the VSAT stock is bearish for the time being as there is a huge gap between the RSI line and its simple moving average line. If there is a strong bullish momentum, the RSI may exceed its oversold level. It will allow the stock to break the resistance in one go.
Conclusion
ViaSat Inc (NASDAQ: VSAT) provides communication technologies and services. The company’s stock price fell after the company reported a drawback in one of its leading satellites. The revenue was down in previous quarters, but the company has bounced back. The current stock price is near a 50-day EMA, and some bearish action is predicted.
Technical Levels
- Support Levels: $15 and $3.93
- Resistance Levels: $28 and $42
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 in stocks or related indexes comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
