Virgin Galactic (NYSE: SPCE) stock price has been in a tailspin since the start of August 2023. After a 10.30% bounce in July, the stock lost 24.30% in the first ten days of August. Technical analysis shows that the stock is currently heading for a retest of the April lows which may result in a bounce.
On Thursday, US stocks showed a slight rebound after the release of the July CPI data. The data showed a 3.2% increase in inflation as compared to the market expectations of 3.3%. The markets initially reacted very positively to the report. However, most of the gains were lost before the day’s end.
NYSE: SPCE Plummets 4.14%
Despite a positive sentiment in the market, Virgin Galactic stock price still experienced increased selling pressure on Thursday. The stock closed the penultimate trading session of the week with a 4.14% loss, dropping to its lowest level since April 27.
The pioneering space tourism company released its Q2 earnings on 1st August. The report showed a wider loss in the second quarter than the same period last year. This caused a rejection from the 200-day moving average in Virgin Galactic shares, which were already facing headwinds. In Q2, Richard Branson’s brainchild launched two space flights, banking $2 million in revenue.
Virgin Galactic Stock Price Forecast
A look at the following NYSE: SPCE chart reveals that the stock is currently retesting a key demand zone. This demand zone has resulted in strong rebounds in the past few months. Virgin Galactic stock price forecast will flip extremely bearish in case of a breakdown below this support level.
There is also a high probability of another bounce from the $3-$3.25 level. Nevertheless, the price would remain bearish for me as long as it remains below the downward trendline, which is visible in the following chart.
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