I was wrong, SPCE got discounted after all! What next?After the successful flight with Branson on board, my prediction was that the price will reach above the all-time high at 62.79 However, the company decided to raise additional capital through issuing new shares AND the first following trading day wasn't exactly good for the stock market overall. Both factors combined lead to cumulative selling.
Even though some profit-taking (and hence drop) was bound to happen after this massive growth, I didn't expect it right after the event.
Today's chart shows three bearish candles which are behaving exactly according to Wyckoff's law of effort vs. result . This means, that there isn't much hideous buying and the drop is genuine and strong.
There are two supports staying in the way of further drop. 200 MA slowed the price every time it was approached. I highlighted all recent instances with a pink circle.
Monthly Highs/Lows are always good to be aware of. Blue circles show recent reactions to monthly Highs and Lows.
200 MA and the previous month's Low are very close and are likely to be tested today or tomorrow. I think it is a good place to buy extra shares, but the price is unlikely to rally to previous levels right now! There are no scheduled events that would trigger interest in the stock and financials are scheduled just 21 days away.
A company announced that it will report its financial results for the second quarter of 2021 following the close of the U.S. markets on Thursday, August 5, 2021. Virgin Galactic will host a conference call to discuss the results that day at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). (14th July, official website of VG)
This company has a future and has just demonstrated that it can fulfill its vision. But with no events in sight for both Virgin Galactic and Virgin Orbit, Galactic will be in the shadow of other big players and won't attract many new investors until such events occur.
I might be wrong again.
Good luck!
