Virgin Galactic News
Shares of Virgin Galactic rallied nearly 20% Monday after two Wall Street analysts started covering the stock with a buy rating, with one calling its growth potential “unparalleled.”
That boost put Virgin Galactic stock SPCE, +24.83% on track for its highest close in eight weeks and its largest one-day increase since April 14. Monday’s gains also stretched the shares’ winning streak to a third session.
The stock has gained 72% this year, compared with gains of around 4% for the S&P 500 index. SPX, +1.61% All seven analysts surveyed by FactSet rate it a buy, with an average price target of $25.43, representing an upside around 27%.
Virgin Galactic “has a unique business with leading market position (no operating competition) and an experienced management team,” B. of A. analyst Ronald Epstein said in a note Monday.
He also highlighted Virgin Galactic’s vertical integration capabilities, calling them “unparalleled.” Most of its rocket and spaceship components, from carbon-fiber structures to avionics and flight simulators, are done in house.
The business is not without risk, however. “A fatal accident, though unlikely, could compromise the business model. As of today, Virgin Galactic has only flown the full mission (to space) two times,” Epstein said.
The company plans to launch its first customers to space out of its New Mexico base by next year, first taking four of its employees to space in early 2021, then flying founder Richard Branson to space to mark the start of commercial operations.
In June, it inked a deal with NASA to train and outfit future space travelers in a bid to boost space tourism.
Virgin Galactic Holdings, Inc., formerly Social Capital Hedosophia Holdings Corp., is an aerospace company that provides human spaceflight for private individuals and researchers.
The Company is focused on developing a spaceflight system to offer customers a multi-day experience culminating in a spaceflight that includes several minutes of weightlessness and views of earth from space.
Through its aerospace development subsidiary, The Spaceship Company, LLC, the Company manufactures its space vehicles in Mojave, California. Its spaceflight system consists of three primary components: its carrier aircraft, WhiteKnightTwo; its spaceship, SpaceShipTwo, and its hybrid rocket motor. SpaceShipTwo is a spaceship with the capacity to carry pilots and customers or payloads, into space and return them to earth.
WhiteKnightTwo is a twin-fuselage aircraft designed to carry SpaceShipTwo up to an altitude of approximately 45,000 feet where the spaceship is released for its flight into space.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 18.48.
The projected upper bound is: 23.46.
The projected lower bound is: 17.41.
The projected closing price is: 20.44.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 16 white candles and 33 black candles for a net of 17 black candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 78.1220. This is not an overbought or oversold reading. The last signal was a buy 24 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 65.71. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 45 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 254.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 0 period(s) ago.
Rex Takasugi – TD Profile
VIRGN GLCTC HD A closed up 4.080 at 20.510. Volume was 152% above average (trending) and Bollinger Bands were 35% narrower than normal.
Open High Low Close Volume 18.600 20.770 18.370 20.510 6,390,279
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 17.10 19.05 17.62 Volatility: 138 98 136 Volume: 2,285,469 2,152,276 2,617,149
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
VIRGN GLCTC HD A gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
VIRGN GLCTC HD A is currently 16.4% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of SPCE.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on SPCE.N and have had this outlook for the last 6 periods.
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