Virgin Galactic Holdings (NYSE:SPCE) shares are jumping Thursday as traders step back into higher beta names following a sharp pullback. Here’s what you need to know.
- Virgin Galactic Holdings shares are powering higher. Why is SPCE stock surging?
Why Virgin Galactic Is Moving Higher
Virgin Galactic is bouncing back Thursday following a steep drop earlier in the week that came on the heels of a dramatic short squeeze as the broader sector surged. The stock soared to $8.90 on Monday before the squeeze unwound, sending shares down to $4.29 by Wednesday.
The move also comes as the entire space sector tries to stabilize after heavy selling tied to SpaceX pre‑IPO fatigue. Space stocks are broadly bouncing back from recent selling pressure on Thursday.
Reports that SpaceX is targeting a $135 per share IPO price and a $1.75 trillion valuation have been circulating all week. With the valuation reset now absorbed by the market, traders appear more willing to reengage with Virgin Galactic after the recent washout.
Technical Picture Shows A Rebound In Progress
Virgin Galactic has pushed back into an upswing. The stock is trading 33.8% above its 20‑day SMA at $3.52 and 56.5% above its 50‑day SMA at $3.01. It is also 46.2% above the 200‑day SMA at $3.22, which signals that the longer‑term trend has turned positive again after spending time under pressure earlier in the year.
RSI sits at 54.68, which is a neutral reading. That tells traders the stock is not overheated and still has room to extend without immediately triggering an overbought signal.
The moving average structure shows a recovery phase. The 20‑day SMA is above the 50‑day SMA, which reflects short‑term strength, while the 50‑day SMA remains below the 200‑day SMA after the January death cross. That combination often appears in the early stages of a longer rebuild.
The next level traders are watching is $5, a round number that often acts as a psychological test during rebounds.
Below is the Benzinga Edge scorecard for Virgin Galactic, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Bullish (Score: 82.28) — The stock is showing stronger-than-average price strength versus the broader market, consistent with its recent trend above key moving averages.
SPCE Shares Are Rallying
SPCE Price Action: Virgin Galactic shares were up 15.62% at $4.95 at the time of publication on Thursday, according to Benzinga Pro.
Image: T. Schneider/Shutterstock
Recent Comments