SPCE finds buyers around 14.63 for the third day in a row
Virgin Galactic Holdings, Inc. (SPCE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
SPCE finished the week 0.77% higher at 15.74 after gaining $1.03 (7.0%) today, notably outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing above Thursday's high at 15.28, the stock confirmed its breakout through the previous session high after trading up to $0.64 above it intraday.
Daily Candlestick Chart (SPCE as at May 22, 2020):
Friday's trading range has been $1.29 (8.62%), that's slightly below the last trading month's daily average range of $1.50. 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.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 16.40 (R1). The market found buyers again today around 14.63 for the third trading day in a row after having found demand at 14.60 in the prior session and at 14.81 two days ago. The last time this happened on May 11th, SPCE actually lost -9.28% on the following trading day.
While Virgin Galactic is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could accelerate should prices move above the close-by swing high at 16.80 where further buy stops might get triggered. Selling could speed up should prices move below the nearby swing low at 14.60 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Virgin Galactic. Out of 60 times, SPCE closed higher 50.00% 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 63.33% with an average market move of 5.25%.