SPCE finds buyers again around 15.73
Virgin Galactic Holdings, Inc. (SPCE) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SPCE ended Thursday at 17.06 gaining $1.06 (6.63%), slightly outperforming the S&P 500 (6.24%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SPCE as at Mar 26, 2020):
Thursday's trading range has been $2.45 (14.9%), that's slightly below the last trading month's daily average range of $2.92. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently just the same than usual for SPCE. Prices continued to consolidate within a tight trading range between 14.63 and 18.39 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 18.50 (R1). After having been unable to move lower than 15.40 in the prior session, the share found buyers again around the same price level today at 15.73. The last time this happened on Monday, SPCE gained 25.83% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 18.39 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Virgin Galactic. Out of 80 times, SPCE closed higher 40.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.00% with an average market move of 4.07%.