Virgin Galactic Holdings Inc. (NYSE:SPCE) shares traded lower by more than 8% Monday ahead of its earnings following the closing bell Monday.
Virgin Galactic reported zero revenue in the first quarter along with a loss of 55 cents per share, down from a loss of $1.86 per share in last year’s first quarter.
Virgin Galactic's stock closed at $17.95 fell another 9% in after-hours trading.
Virgin Galactic Daily Chart Analysis
- Virgin Galactic shares look to be forming what technical traders may call a head and shoulders pattern.
- The stock is trading below both the 50-day moving average (green), and below the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
- These moving averages may hold as resistance levels in the future.
Key Levels To Watch
- The head and shoulders pattern happens when the stock pulls back steeply and buyers are unable to push the price to new highs.
- This bearish reversal pattern will push the price lower until the stock finds support, typically near an area where the stock previously found support.
- The $15 level is an area the stock has found buyers, shares may fall until the price reaches this area where it either bounces or breaks below the support.
Bullish technical traders would like to see the stock find some support and start turning around. If the stock can find some support near $15, a trend change may happen when the stock begins to form higher lows.
Bearish technical traders would like to see the stock continue trading downwards. The head and shoulders pattern looks to have pushed the price down. If there is a break below the $15 support, the stock may see a further downwards push.
Virgin Galactic is a top 10 holding in the following ETFs: Procure Space ETF (NASDAQ:UFO), and Defiance Next Gen SPAC Derived ETF (NYSE:SPAK). The stock is also a holding in Direxion Daily Aerospace & Defense Bull 3X Shares ETF (NYSE:DFEN)