My SPCE trade has been going horribly wrong to say the least, but I’m still optimistic about exiting near breakeven or profit.
I was bullish for SPCE’s August launch, which marked a key milestone for Virgin Galactic since they finally delivered on their long-term promise to send customers on a unique space flight.
August turned out to be a bearish month for the stock market with a 3-week correction, which sent SPCE below the buy zone. I was okay with being in a temporary loss, but SPCE continued to bleed week after week as I continued to wait for an uptrend to exit.
Yellow Trendline
This yellow trend line is a key trendline that SPCE has been following on this move down.
SPCE had a breakout above this yellow trendline at $2.50 (marked by the white circle)
However, SPCE’s breakout flopped and SPCE drop back down to retest the yellow trendline as support at $1.85 (marked by the green arrow)
Exit Plan
As traders and investors we have to live by our trading decisions. I chose to DCA down to $2.75 instead of putting a stop loss or manually exiting the trade. SPCE has dropped even further, which resulted in a steep loss.
I placed one last buy order at $1.90 and I will patiently wait for the next uptrend
As marked by the white arrows, SPCE has downswings and upswings. SPCE’s recent downswing has lasted for 6 weeks, and I believe that there will be some upside sooner rather than later.
Key Price Targets
- The first price target is the buy zone between $3 and $3.50, which is likely to act as an area of resistance on the way up.
- My other two key price targets above the buy zone are $4.43 and $5.71.
Technical Analysis
I was bullish for SPCE’s August launch, which marked a key milestone for Virgin Galactic since they finally delivered on their long-term promise to send customers on a unique space flight.
August turned out to be a bearish month for the stock market with a 3-week correction, which sent SPCE below the buy zone. I was okay with being in a temporary loss, but SPCE continued to bleed week after week as I continued to wait for an uptrend to exit.
Yellow Trendline
This yellow trend line is a key trendline that SPCE has been following on this move down.
SPCE had a breakout above this yellow trendline at $2.50 (marked by the white circle)
However, SPCE’s breakout flopped and SPCE drop back down to retest the yellow trendline as support at $1.85 (marked by the green arrow)
Exit Plan
As traders and investors we have to live by our trading decisions. I chose to DCA down to $2.75 instead of putting a stop loss or manually exiting the trade. SPCE has dropped even further, which resulted in a steep loss.
I placed one last buy order at $1.90 and I will patiently wait for the next uptrend
As marked by the white arrows, SPCE has downswings and upswings. SPCE’s recent downswing has lasted for 6 weeks, and I believe that there will be some upside sooner rather than later.
Key Price Targets
- The first price target is the buy zone between $3 and $3.50, which is likely to act as an area of resistance on the way up.
- My other two key price targets above the buy zone are $4.43 and $5.71.
Technical Analysis
- Technical analysis tools are providing several bullish signals for SPCE at $1.90.
- The RSI is oversold on the 1-day time frame and trending up
- SPCE formed a bullish bounce off the yellow support line
- SPCE dropped below the lower range of the Bollinger Band ($2.10), which signifies a discounted buy opportunity on this drop.
- The lower range of the EMA ribbon is sitting around $3.33 on the weekly time frame, which is ideal for opening a long at current price levels.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.