SpaceX remains the popular girl at the summer party. It remains a babe in the woods technically but the daily time frame is finally starting to provide hints on going forward. Here is the prior SPCX chart and technical analysis. Here is the IPO drama when the rocket company crashed and burned.
Price tumbles lower as SPCX receives bad press, and the failed rocket launch did not help especially with the stock debuting, but that was then, and now it is rock n roll time. Rock n Roll Is King. The green lines show the falling wedge pattern that is bullish. Price violated the lower standard deviation band so the middle band was on the table and that occurs.
However, yearnings were on tap last week and that knocked the newbie stock backwards down to the price lows again. Since price is making a matching or lower low, the chart indicators can be assessed for positive divergence and that remains in full swing (the green lines for the indicators). Possie d launched the stock 2 days before yearnings and there was no reason technically for it to come back down on the daily basis. It was good for its possie d rocket launch that occurs.
Despite the yearnings failing to create positivity and price dropping, all it did was confirm the strong and universal positive divergence in the daily time frame, and boom, she launches higher again as expected. The chart indicators remain long and strong so SPCX should continue the rally for a few days. Simply watch to see when it forms neggie d and you will know when the top is in on the daily basis. The stochastics and money flow were oversold agreeable to a rally that is occurring.
Price will likely target the upper band at 140. Of course, it will want to touch the 135 IPO price since it is in the neighborhood now at 133. The 150 price is where it started trading so that is a key number and you can see the solid overhead price resistance at this level from June and July. If the 150 is tagged, that would be well above the standard deviation top line so price would likely want to relax back down a bit from there. The 20-day MA at 120-121 is key and price will likely want to come back for a back kiss at some point forward. That will result in a bounce or die scenario and the chart is very positive in the daily time frame.
The RSI is above 50% crossing up into bull territory. Ditto the stochastics. The Aroon is interesting with the red line showing that the SpaceX bears are firmly convinced that SPCX stock will continue dropping. No surprise there, right? The green line shows that nearly all the SPCX bulls do not have any confidence in the stock price recovering; they are bulls sitting in the bear camp listening to sad campfire stories about Challenger. The Aroon is a contrarian indicator. With everyone on the bear side of the boat, that is another bullish indication for the stock to rally (the crowd is typically wrong).
SpaceX would be expected to continue to rally in the daily time frame for a few days forward. Traders may change their tune and become excited about SPCX again and shoot it to the moon. That 150-170 channel is interesting. The weekly chart does not have any technicals yet so the weekly basis cannot be gauged yet. The money was made over the last couple days by savvy day-traders that played the possie d. She may rally going forward and then find a home inside that 150-170 channel for a few weeks. It is still an infant technical-wise so it will need more time to provide technical lines and patterns that can be assessed.
Keystone is not in SPCX right now long or short. It can be chased here and will probably provide some additional gains for long traders but keep an eye out as the negative divergence will form so you can git outta Dodge while the gittin' is good. Ground control to Major Tom. Space Oddity. Take your protein pills and put your helmet on. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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