My Virgin Galactic (SPCE) Exit Strategy
My SPCE trade has been going horribly wrong to say the least, but I’m still optimistic about exiting near breakeven or profit.
I was bullish for SPCE’s August launch, which marked a key milestone for Virgin Galactic since they finally delivered on their long-term promise to send customers on a unique space flight.
August turned out to be a bearish month for the stock market with a 3-week correction, which sent SPCE below the buy zone. I was okay with being in a temporary loss, but SPCE continued to bleed week after week as I continued to wait for an uptrend to exit.
Yellow Trendline
This yellow trend line is a key trendline that SPCE has been following on this move down.
SPCE had a breakout above this yellow trendline at $2.50 (marked by the white circle)
However, SPCE’s breakout flopped and SPCE drop back down to retest the yellow trendline as support at $1.85 (marked by the green arrow)
Exit Plan
As traders and investors we have to live by our trading decisions. I chose to DCA down to $2.75 instead of putting a stop loss or manually exiting the trade. SPCE has dropped even further, which resulted in a steep loss.
I placed one last buy order at $1.90 and I will patiently wait for the next uptrend
As marked by the white arrows, SPCE has downswings and upswings. SPCE’s recent downswing has lasted for 6 weeks, and I believe that there will be some upside sooner rather than later.
Key Price Targets
- The first price target is the buy zone between $3 and $3.50, which is likely to act as an area of resistance on the way up.
- My other two key price targets above the buy zone are $4.43 and $5.71.
Technical Analysis
I was bullish for SPCE’s August launch, which marked a key milestone for Virgin Galactic since they finally delivered on their long-term promise to send customers on a unique space flight.
August turned out to be a bearish month for the stock market with a 3-week correction, which sent SPCE below the buy zone. I was okay with being in a temporary loss, but SPCE continued to bleed week after week as I continued to wait for an uptrend to exit.
Yellow Trendline
This yellow trend line is a key trendline that SPCE has been following on this move down.
SPCE had a breakout above this yellow trendline at $2.50 (marked by the white circle)
However, SPCE’s breakout flopped and SPCE drop back down to retest the yellow trendline as support at $1.85 (marked by the green arrow)
Exit Plan
As traders and investors we have to live by our trading decisions. I chose to DCA down to $2.75 instead of putting a stop loss or manually exiting the trade. SPCE has dropped even further, which resulted in a steep loss.
I placed one last buy order at $1.90 and I will patiently wait for the next uptrend
As marked by the white arrows, SPCE has downswings and upswings. SPCE’s recent downswing has lasted for 6 weeks, and I believe that there will be some upside sooner rather than later.
Key Price Targets
- The first price target is the buy zone between $3 and $3.50, which is likely to act as an area of resistance on the way up.
- My other two key price targets above the buy zone are $4.43 and $5.71.
Technical Analysis
- Technical analysis tools are providing several bullish signals for SPCE at $1.90.
- The RSI is oversold on the 1-day time frame and trending up
- SPCE formed a bullish bounce off the yellow support line
- SPCE dropped below the lower range of the Bollinger Band ($2.10), which signifies a discounted buy opportunity on this drop.
- The lower range of the EMA ribbon is sitting around $3.33 on the weekly time frame, which is ideal for opening a long at current price levels.
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Join my exclusive Discord community for swing trading, options trading, and long-term investing.
There is a free trial period for the group
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