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.

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