Virgin Galactic In the process of Bottoming out?
Updated
Hi, this is a Technical Analysis on Virgin Galactic (SPCE), it is viewed on the 1 Week timeframe.
Our current candle is currently in the process of breaking out BELOW our UPSloping Support Trend Line, highlighted by the RED circle.
Note: The candle closes, end of trading session on 7th of August, Monday. Meaning our current candle is not accurate, so we need keep a close eye.
If we close ABOVE, our trend continues, giving us yet another week to tread along and hopefully break our ressistance trend lines.
Our RESISTANCE is 2 FOLD
1. Upper Resistance line of DOWNWARD CHANNEL
2. RED HORIZONTAL LINE above us
If we close BELOW, it means we are attempting a "Trend Change", but this candle alone is not enough, We would need to look for CONFIRMATION. This can be way of a specific single candle printing or a candle pattern formation. (I will be sure to update in the coming weeks).
Our 1st Target would be the BLACK Horizontal Support line below
Our 2nd Target, which is also a CRITICAL ZONE is our STOCK LOW @ around $3.11, depicted by RED LINE
->Below this, we form a lower low and make NEW LOWS
Our 3rd level would be where Lower BLACK line of the DOWNWARD channel and PRICE meet, below the RED Horizontal line.
Our overall DIRECTION currently, is DOWN. Evident by the DOWNWARD CHANNEL drawn with BLACK lines. **Until PROVEN OTHERWISE**.
-> For us to break the downtrend, we need to break and CONFIRM ABOVE the upper trend line of DOWNWARD CHANNEL.
So when im looking at the current candle, im thinking its MORE PROBABLE we go down.
Notice how the Week of June 12th and June 20th, we had Large Upper Wicks form, this indicates SELLING PRESURE. The pressure was due to convergence of resistance of the BLACK and RED Resistance lines. The pressure from this event, can be whats pushing our price down.
My thought process is that i actually want PRICE to hit the LOWER SUPPORT LINE of the CHANNEL. Doing so, as long as the RSI maintains Higher Lows will lead to the formation of a BULLISH DIVERGENCE.
This leads to prices MOVING to the UPSIDE, in most cases. Can be a BOTTOMING pattern, in my opinion.
Now lets look to my indicators for more evidence.
RSI is getting tight in this symmetrical triangle pattern. We will soon see a breakout ABOVE or BELOW. If we break BELOW, look to the RED line, we want to stay above here for the possibility of a BULLISH DIVERGENCE to be in the picture.
ALso note: Symmetrical triangles usually break out to the upside.
ORANGE RSI line, should also stay ABOVE the Black moving average. Look left, everytime we CONFIRM below, PRICE DROPS DOWN.
STOCH RSI, is in the process of a BEARISH CROSS, this if confirmed on Monday will bring in momentum to push prices DOWN.
ADX which is also a momentum indicator, I would like to see the BLACK moving average, curve up, GREEN Line also curve up breaking out of the upper border of rectangle. This would indicate to me that a large amount of bullish momentum is coming in.
CONCLUSION:
Overall, i believe SPCE is in the process of carving out a BOTTOM. Its evident by the range highlighted by rectangle, we are in some sort of CONSOLIDATION. Our current price action must be observed. In the chance we do CONFIRM below and go lower in price, it will provide great entry levels for BUY ORDERS. If we also hit the lower support trend line of the down channel, the potential for a BULLISH DIVERGENCE may become more probable. With all the evidence being presented, it is important to observe SPCE to see what it does in the coming Weeks to Months.
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. When trading always spend majority of your time on risk management strategy.
Our current candle is currently in the process of breaking out BELOW our UPSloping Support Trend Line, highlighted by the RED circle.
Note: The candle closes, end of trading session on 7th of August, Monday. Meaning our current candle is not accurate, so we need keep a close eye.
If we close ABOVE, our trend continues, giving us yet another week to tread along and hopefully break our ressistance trend lines.
Our RESISTANCE is 2 FOLD
1. Upper Resistance line of DOWNWARD CHANNEL
2. RED HORIZONTAL LINE above us
If we close BELOW, it means we are attempting a "Trend Change", but this candle alone is not enough, We would need to look for CONFIRMATION. This can be way of a specific single candle printing or a candle pattern formation. (I will be sure to update in the coming weeks).
Our 1st Target would be the BLACK Horizontal Support line below
Our 2nd Target, which is also a CRITICAL ZONE is our STOCK LOW @ around $3.11, depicted by RED LINE
->Below this, we form a lower low and make NEW LOWS
Our 3rd level would be where Lower BLACK line of the DOWNWARD channel and PRICE meet, below the RED Horizontal line.
Our overall DIRECTION currently, is DOWN. Evident by the DOWNWARD CHANNEL drawn with BLACK lines. **Until PROVEN OTHERWISE**.
-> For us to break the downtrend, we need to break and CONFIRM ABOVE the upper trend line of DOWNWARD CHANNEL.
So when im looking at the current candle, im thinking its MORE PROBABLE we go down.
Notice how the Week of June 12th and June 20th, we had Large Upper Wicks form, this indicates SELLING PRESURE. The pressure was due to convergence of resistance of the BLACK and RED Resistance lines. The pressure from this event, can be whats pushing our price down.
My thought process is that i actually want PRICE to hit the LOWER SUPPORT LINE of the CHANNEL. Doing so, as long as the RSI maintains Higher Lows will lead to the formation of a BULLISH DIVERGENCE.
This leads to prices MOVING to the UPSIDE, in most cases. Can be a BOTTOMING pattern, in my opinion.
Now lets look to my indicators for more evidence.
RSI is getting tight in this symmetrical triangle pattern. We will soon see a breakout ABOVE or BELOW. If we break BELOW, look to the RED line, we want to stay above here for the possibility of a BULLISH DIVERGENCE to be in the picture.
ALso note: Symmetrical triangles usually break out to the upside.
ORANGE RSI line, should also stay ABOVE the Black moving average. Look left, everytime we CONFIRM below, PRICE DROPS DOWN.
STOCH RSI, is in the process of a BEARISH CROSS, this if confirmed on Monday will bring in momentum to push prices DOWN.
ADX which is also a momentum indicator, I would like to see the BLACK moving average, curve up, GREEN Line also curve up breaking out of the upper border of rectangle. This would indicate to me that a large amount of bullish momentum is coming in.
CONCLUSION:
Overall, i believe SPCE is in the process of carving out a BOTTOM. Its evident by the range highlighted by rectangle, we are in some sort of CONSOLIDATION. Our current price action must be observed. In the chance we do CONFIRM below and go lower in price, it will provide great entry levels for BUY ORDERS. If we also hit the lower support trend line of the down channel, the potential for a BULLISH DIVERGENCE may become more probable. With all the evidence being presented, it is important to observe SPCE to see what it does in the coming Weeks to Months.
Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.
If you have any questions, do reach out. Thank you again.
DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. When trading always spend majority of your time on risk management strategy.
Note
Just a correction to a misinfo i have = The new weekly candle has already begun Today, Monday 7th of August. Last weeks candle is closed and it was closed BELOW support line. Look to this weeks candle for signs of confirmation or confirmation in next couple weeks.Note
Currently attempting to bounce off Target 1Note
Hi Guys! I've POSTED an UPDATE on SPCE.Link Below
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