Virgin Galactic stock price gained 5.6% after the close Thursday after the space tourism company posted Q2 results and announced the return of ticket sales.
Virgin Galactic Holdings Inc (NYSE: SPCE) finished Thursday’s official trading session at $31.53, higher by $0.75 (+2.44%). Although, the real action came in extended trading when the stock jumped 5.61% to $33.30.
After the close, the company delivered its second-quarter trading update, revealing it would restart ticket sales with seats starting at $450,000.
“We have a purposeful range of product offerings to satisfy the different ways people will want to share this experience of private astronaut flights,”Virgin Galactic CEO Michael Colglazier.
Despite the company reporting a wider-than-expected loss of $56 million, investors focused on the positives, sending the Virgin Galactic stock price skywards.
As a result, the technical outlook has improved. For the last three weeks, the stock has been strangled by a tightening triangle formation. Basis the last trade, the price has now broken out to the upside.
SPCE technical analysis
The daily chart shows several positive developments. Firstly, SPCE is above the 100-day moving average at $30.52 and the 200-day at $30.96.
Furthermore, the price has cleared the descending trend line resistance at $32.25.
If the Virgin Galactic stock price closes above the pattern today, it will confirm the bullish breakout. This should lead to a test of the 50 DMA at $36.44, around 15.5% higher than yesterday’s official close.
However, the bullish outlook is dependent on SPCE remaining above the longer-term averages. And on that basis, should the price fall below $30.52, it will invalidate the view.
Virgin Galactic stock price chart
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