The Virgin Galactic share Price has taken a beating recently. Recent, positive developments suggest may finally be preparing to launch higher.
It’s been a long since I have been optimistic about Virgin Galactics’ prospects. Delayed test flights, insider selling, and increasing competition had rightly been weighing the price down.
The stock (Ticker: SPCE) enjoyed a rocket-fuelled start to this year and by February was trading at $62.80. Since then, the continuously negative newsfeed has seen the price give back all of 2021’s gains.
The Virgin Galactic share price eventually found a bottom on the 11th of May at $14.27.
After seeing the price drop by 77% from the highs, bulls were in desperate need of some good news. Luckily for them, they got not one but two positive catalysts.
The upcoming spaceflight test, which was expected to be delayed, is now reportedly cleared for take-off sometime today.
In addition to this, UBS has upgraded the stock from ‘Neutral to ‘Buy.’ The Swiss banks’ $36.0 target price would represent a gain of 73% from the current $21.07.
Virgin Galactic Share Price Outlook
The rally at the tail-end of the week has pushed the Virgin Galactic share price above two important levels.
The first was a long-term support line that had been in place from November 2020.
Secondly, the price managed to break above a descending trend line from early march.
With the two important levels now below the price, the stock should go on top to fill a gap on the chart at $26.35. The 200-day Moving Average at $26.42 reinforces this resistance and should cap the rally.
Obviously, it goes without saying that the bull case is heavily reliant on a successful test flight in a few hours.
A close back below the descending trend line at $19.62 would cancel the bullish outlook.
SPCE Daily Chart
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