The Virgin Galactic share price is set for a higher open this Friday after the stock soared 14% yesterday on positive news from the US aviation regulator.
Virgin Galactic share price is currently trading at 25.47 in premarket, higher than yesterday’s closing price of 25.30. Thursday’s big jump in the Virgin Galactic share price came as the Federal Aviation Administration cleared the company for future space flights, after ending its investigation into the company’s maiden flight undertaken two months ago.
The FAA had launched an investigation into Virgin Galactic’s SpaceShipTwo flight after it veered slightly off course. However, the FAA appears to have accepted the company’s explanations that high-altitude winds forced the crew to take evasive manoeuvres. Another flight is scheduled for this October.
Virgin Galactic Share Price Outlook
The spike in the share price is now testing the combined resistance formed by the channel’s upper border and the 26.52 resistance line. A break of this barrier brings the price action in contact with 32.08 (31 March, 27 May and 29 July highs). A further advance beyond this resistance targets 35.04, with 39.80 also serving as a viable resistance for the future.
On the flip side, rejection at 26.53 returns the price action to the 23.79 support. If this support and the channel’s lower boundary give way, 20.04 becomes available as a new downside target. Below this level, 14.99 (13 May low) also serves as potential support of note.