10/21/2022
Remember when investing in space tourism was still a thing?
It was only a little over a year ago that Virgin Galactic Holdings Inc. (SPCE) printed a high of $55.91…
…now it’s at $4.26…
That’s not the type of rocket investors want to see…
But maybe satellite launch companies are the way to go.
Let’s get a look at Sir Richard Branson’s other space company, Virgin Orbit Holdings Inc. (VORB):
Up top is the 375-minute chart.
I checked the daily, but the win rate paled in comparison according to my usual strategy — 60% win rate with a 2.89 profit factor.
Sound ridiculous? I thought so too…
I don’t have a long signal just yet, but if this chart plays out the way it’s setting up, I wouldn’t doubt that I’d receive one shortly.
Over the last week, VORB developed a bullish Pennant. I’ve drawn this in white.
A measured move would be equal to the widest part of the flag upon breakout, so let’s call it ~$3.50.
This also puts it up against current Resistance (horizontal red channel)…
…conservative target.
The Fibonacci Retracement also places the stock in the “Fib Pocket” or 50%-61.8% range from the recent rise.
Using Chris Hood’s Alpha Waves tool (second indicator on lower chart), the composite Stochastic (multi-colored line) has crossed above the zero line in pink, but is flat.
Notice that the dots are mixed, hence the yellow flag.
I’d expect this during this part of the move.
Why? It’s a bullish pattern with a higher probability of upward movement, but… we’re in a downtrending market.
In other words, this is no man’s land where VORB can break down or up.
But I want to also point out the decreased Short Volume and Volatility.
This is illustrated by the bottom two indicators, respectively…
See the drop from bright to dark red? And the shift from neon green to gray with lower bars?
You tend to see this before a move higher…
Now, I know we all want a degree of certainty in this market, but this is where risk management comes into play.
An entry between ~$2.75 and ~$3.00 might be worth a shot at ~$3.50.
For me, it’s risk off below ~$2.64.
Keep moving,
(Disclosure: I am long VORB.)
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
