$SPCE A Deep Dive Into Virgin Galactic.
Within this analysis hopefully we will help you by showing the significance of the following analysis strategies =
- Most Important is the Candle itself.
- Volume, which is often overlooked.
- Pivot Points
- Support and Resistance levels.
- Moving Averages (MA & EMA)
- Time
- Supply and Demand
- Point Of Control (poc)
Chart 1=30mins
This gives us a great insight into the importance of the Moving Averages and the Significance that breaking this support had on the stock of SPCE.
Once the 50ma on the weekly was broken we see that the volume spiked as this is seen as a very negative trend break, the 50MA was support on multiple occasions but
that was during a bull run for the stock, within this downtrend losing that support opened the trap door and capitulation volume occurred.
Support was found on the Volume Shelf (node) you will see on the weekly chart how it was identified.
The relief bounce (04/16) then found resistance at the Yearly Candle S/R level, we see 1 candle broke above and failed then the second 30min candle also got rejected and selling once again dominated the action.
It is fair to say now that this stock has developed a Local Range between Support (Volume Shelf) and Resistance (Yearly s/r) and until that is resolved it is best to sit
on the sidelines.
Major resistance on the weekly is now the 50MA and until reclaimed the bearish trend is intact.
You will see on the charts which follow how and why we have selected certain pivotal levels.
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