Shares were up about 15% in premarket trading, but the bulls haven’t let up one bit.
The move on Friday was ignited by the Federal Aviation Administration, which approved the company’s commercial space launch license.
There’s likely a bit of a short-squeeze playing out as well, with Virgin Galactic certainly holding its own in the meme-stock arena. AMC Entertainment (AMC) - Get Report, GameStop (GME) - Get Report and others continue to garner attention, but Virgin Galactic is in full focus Friday.
Virgin Galactic now has the catalysts that bulls have been waiting for and all-time highs aren’t that far away.
Can this stock steal the meme-stock spotlight and continue to surge higher?
Trading Virgin Galactic
In any regard, notice the way shares have continuously bottomed near $15. Shares hammered out a bottom nicely in this area, then quickly rebounded back over $24.
While that’s a solid rally on its own, reclaiming $24 was no small observation. This has been a key level over the past several quarters.
Once back above it, Virgin Galactic was able to storm high. We then had a bull pennant consolidation to the 10-day moving average, which then ignited the stock up to the $41.66 gap-fill level.
Shares failed to penetrate this mark on Wednesday and Thursday. Thankfully on Friday, the FAA news was able to fault shares higher, as Virgin Galactic cleared the 61.8% and 78.6% retracement levels.
I’m not going over all of this just to put words to paper — I really want to illustrate how good of a trading vehicle Virgin Galactic stock can be.
From here, let’s see if Virgin Galactic can hold up over the 78.6% retracement. This was also a breakdown level for the stock in February, so it’d be bullish to see it hold above it.
Below the 78.6% retracement area and $50 could be on the table, followed by the 61.8% retracement.
On the upside, let’s see if Virgin Galactic can push up toward $60. Above this level and the all-time high at $62.80 is in play.