Class-Action Lawsuits Threaten to Force Virgin Galactic Stock Price Lower

The Virgin Galactic stock price faces stiff opposition this Wednesday, as at least three law firms have issued notices of class-action lawsuits against the aerospace company.

Levi & Korinsky LLP, Pomerantz LLP, and Schall Law Firm have filed securities class-action lawsuits that allege that the company violated federal securities laws by providing false/misleading information to investors. Financial compensation is now being sought for plaintiffs in at least one such case. 

Allegations of manipulation of Virgin Galactic’s stock price during the company’s listing have trailed the stock.

Technical Outlook for Virgin Galactic Stock Price

The stock is marginally lower for the 3rd day running and is gradually inching towards the support at 26.53, where the 200-day moving average is located. A breakdown of this level sends the stock towards the support at 23.79, with additional downside targets at the 20.00 psychological price level and the 14.99 pivot formed by recent lows in mid-May.

On the other hand, a bounce on the 200-day moving average allows for a retest of the 30.00 psychological resistance, with 35.04 (16 March/28 May low) and 39.80 serving as additional targets to the north.

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