Virgin Galactic Shares Crack Below Support: Will The Stock See Further Fall?

Virgin Galactic Holdings Inc. SPCE shares are trading lower Friday after the company said there would be approximately a one-month delay for the enhancement period for VMS Eve and VSS Unity. Commercial service is now expected to commence in the fourth quarter of 2022.

Virgin Galactic was down 14.88% at $20.50 at publication time.

See Also: BofA Cuts Virgin Galactic Target Following Latest Flight Delay

Virgin Galactic Daily Chart Analysis

• Shares have dropped below a key $24 level and head toward the next possible support area in what technical traders call a sideways channel.
• The $15 level is the next area where the stock may find support nea,r as it has previously been support. If the stock turns around and crosses back above the $24 level, it may head higher toward the $35 resistance level.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) has been dropping lower the past few days and sits at 34. This indicates there are quite a few more sellers than buyers in the stock.

What’s Next For Virgin Galactic?

Bullish traders are looking to see the stock bounce and cross back above the $24 level. A period of consolidation above the $24 level could push the stock higher and move toward the $35 resistance level.

Bears would like to see the stock continue to fall and eventually fall low enough to where it can break below the $15 resistance level. Consolidation below this level could bring about further bearish moves.