SpaceX sputter sideways running low on bull fuel. Is the luster off the Musk rose and instead it is smelling like musk? The cup and handle (C&H) pattern jumps out at you (brown lines). It must be C&H weekend since crude oil is also displaying a C&H. It is a bullish pattern but price must break out above the brim base line to prove that it wants to go higher.
The IPO price was set at the 135 and it opened for trading at 150. Price jumped to 225.64 three days after trading started and the bigger fool showed up to get fleeced. People got caught up in the hype and they are now walking around wearing a barrel.
Price splashes down to Earth bottoming at 107-ish the base of the cup. The handle for the cup forms and price sits at the spot where it needs to break out higher at the 150 level. The difference between 150 and 107 is a 43-point tall cup. Thus, mathematician say thus a lot, that is why Keystone was not allowed to speak at the Toastmasters luncheon, the upside target for the C&H pattern would be 193 (150+43) if price breaks above 150.
Note the strong price support/resistance (S/R) at the key 135 and 150 levels. There are a lot of touches along these two levels that gives them street cred. The orange circles show gaps above that need filled at some point forward. There is a price cluster around 188-195, and a gap, so it makes sense the C&H would target that area if it plays out.
As stated in the other SPCX charts, she is a babe in the woods technical-wise and more time is needed for moving averages and other technicals to form especially on the weekly chart. But, you work with what you got not what you wish you had. The daily time frame above shows the last two days with matching highs with the red lines showing negative divergence wanting to spank price lower, hence the softness in price on Friday. Mathematician's say hence a lot and this is okay since Keystone accepted an invitation to provide the keynote speech at the Renaissance Festival, where hence's, ergo's, and thereto's are welcome.
The stochastics show upward juice remaining in the fuel tank for the last few days but remains neggie d for the last month. Ditto the histogram. The chart is not inspiring for upside; it is tired. Thus, SpaceX likely needs some type of positive news hype, perhaps a humanoid robot doing the Charleston, to get it to breakout above 150. If so, price may spend some time in the 150-170 channel before bumping up to the 193 target for the C&H.
If price fails here, it will likely bump around in the 135-150 range for a few days. The chart indicators are not tipping their hands. The stock may also move in general agreement with the way tech and AI stocks move. Thus, if you are a SPCX bull, you want to see tech stocks in general to rally, as well as hear some positive news that can kick the C&H into gear.
On the technical side of trading, there are typically three buy points on a breakout. The breakout is bot, and then price usually runs higher for a few days but then pulls back for a back kiss of the breakout line, or near the breakout, that is the second buy point as price moves higher again from this back check. Then the third buy point is when price breaks out above the initial breakout high it achieved.
Keystone is not in SPCX long or short right now. A move above 155 will likely take the stock higher to 190+ going forward. Happy news about the new engines could be a catalyst to kick the C&H into gear. Spaceman by 4 Non Blondes. Linda is fantastic. 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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