Virgin Galactic Stock Is Holding Above A Key Support Level

Virgin Galactic Holdings Inc SPCE shares are trading higher Friday, although there looks to be no company-specific news out to explain the jump in price. The stock looks to be holding a key support level.

Virgin Galactic is trading up 6.82% at $26.16 at last check Friday afternoon. 

Virgin Galactic Daily Chart Analysis

• Shares are trading in what technical traders call a sideways channel and look to be holding above a key support level.
• The $24 level is an area that once held as resistance, but later crossed above and turned into support. This area now looks to be holding again as support. If the stock was unable to hold this level, it may fall toward the next support level near $15. The $35 level has held as resistance in the past and may continue to in the future.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating the sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) is starting to move higher after bouncing off the oversold border, the RSI now sits at 48. This shows there have been more buyers moving into the stock, although there are still more sellers in the stock overall.

See Also: Virgin Galactic Opens Up Space Flights: Here's How Much It Will Cost To Fly To Space Like Richard Branson

What’s Next For Virgin Galactic?

Bullish traders would like to see the stock hold above the support level and begin to form higher lows. Bulls would then like to see the stock move higher and break above the resistance level.

Bears are looking to see the stock be unable to hold the $24 level as support. Bears would like to see the stock fall below this key level and head toward the $15 level.

Photo: Virgin Galactic