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$SPCE TA – Broke Out Of A Major Setup Friday – To The Moon!

We all know about the successful flight and everyone is expecting some moonage next week – so I just wanted to provide some unbiased TA. Keep in mind technicals are not a crystal ball, they are a road map. I do not hold a position (although if I looked at the chart Friday, I would).

$SPCE 1 Year 1 Day

Here you can see we broke out of a large descending wedge on Friday (with fantastic volume). This is the same pattern damn near every speculative growth stock has been caught in for the past few months. Normally it has a bearish bias – because it is coming from downside. However, in this scenario – it broke up – which means we can see some fantastic follow through to the upside.

The price targets for this setup would be 22.61, 26.18, 28.05, 29.71. These are all resistances – and in a normal situation you would either trim as we run into these, or scale in as we clear them.

However – given the news catalyst – it's hard to say how high we will gap up on Monday. Above that last level is 34.84 and 36.63. It's unlikely we cross these without an insane short squeeze, or another pattern forming (at least on the shorter term charts).

Remember, each time we clear one of these levels on a daily close – it will become a support. As a result, you can trail your stop loss below them as we continue.

This is one of many examples of "technicals precede news" I have encountered throughout my trading career – and one of the reasons I try to ignore anything except for the charts while I am trading. It's hard to quantify arbitrary events – and especially hard to do so without bias. Thankfully, we will often break out of a major pattern prior to a news release – like you see here.

I'll be looking to day trade this stock next week depending where we open.

TL;DR – $SPCE broke out Friday & has positive news to help it along next week

Price targets are 22.61, 26.18, 28.05, 29.71

Not Financial Advice

submitted by /u/tickerwizards
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