Virgin Galactic Stock Fails At Important Resistance: Is A New Downtrend Forming?

Despite a significant amount of hype leading up to this weekend’s spaceflight launch, shares of Virgin Galactic Holdings, Inc. SPCE have failed at important resistance after the company filed or a $500 million shelf offering of common stock. Now a new downtrend seems to be forming.

Resistance is a large group of sellers who are all trying to sell their shares around the same price. In this case, it’s $57.50.

At resistance levels, there is more supply than demand. That’s why rallies end and sometimes reverse when they reach them. This is what happened to SPCE in February when it got to this resistance.

Now the same thing appears to be happening once more. A new downtrend may be forming.

See Also: Richard Branson Traveled To The Edge Of Space. Here's How You Could Get A Future Ticket With A $5 Donation.

spce_0.png

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: TechnicalsTrading Ideas
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!