Virgin Galactic Has Been Grounded

In this daily bar chart of SPCE, below, we have trouble finding technical inspiration for the bulls. Prices has been moving sideways to lower since the beginning of the calendar year. SPCE is trading below the flat 50-day moving average line and below the declining 200-day line.

The On-Balance-Volume (OBV) line has turned lower from early August and tells me that sellers of SPCE have turned more aggressive with heavier trading volume on days when SPCE closes lower on the day. The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line in sell territory. 

  

In this weekly Japanese candlestick chart of SPCE, below, we see a bearish picture. Prices remain below the declining 40-week moving average line. The weekly OBV line is pointed lower. The MACD oscillator is below the zero line and narrowing. 

 

In this daily Point and Figure chart of SPCE, below, we can see a potential upside price target of $6.57 – doesn’t move the needle for me. 

 

In this weekly Point and Figure chart of SPCE, below, we can see a downside price target in the $4 area. 

 

Bottom line strategy: Traders should consider booking a vacation trip to the Caribbean this winter and take a pass on SPCE.