SpaceX is about to make its grand entrance on public markets, and everyone's talking about it. But while Wall Street obsesses over Elon Musk's rocket company, another space stock just quietly flashed a signal that technical traders love to see.
Virgin Galactic Holdings Inc. (SPCE), currently trading around $4.34 per share, recently formed a Golden Cross — that's when a stock's 50-day moving average climbs above its 200-day moving average. It's a pattern that often marks the beginning of a longer-term uptrend, or at least that's what the chart watchers hope.
The timing is interesting. SpaceX is expected to start trading at $135 per share or higher, potentially becoming one of the largest and most expensive IPOs in history. But while the big money fights over SpaceX's valuation, Virgin Galactic has been quietly rallying — up more than 56% over the past month.
Golden Cross Setup
Let's look under the hood. According to the chart, SPCE's 20-day moving average sits at $4.17, comfortably above its 50-day moving average of $3.33. Even after Thursday's pullback, the stock remains above both trend lines, keeping the bullish crossover intact.
Volume has also been telling a story. During the recent advance, several sessions posted significantly above-average trading activity. When volume confirms a price move, technical traders tend to pay attention.
Momentum Indicators
The momentum readings are looking constructive too. The Relative Strength Index (RSI) stands at 51.85 — right in the middle, suggesting the stock isn't overbought or oversold. There's room to run in either direction.
Meanwhile, the MACD indicator remains in positive territory, with the MACD line at 0.50 and the signal line at 0.52. Momentum has cooled a bit from recent highs, but the overall trend backdrop still looks bullish.
SpaceX Shadow
It's hard to ignore the SpaceX factor. As investors gear up for that blockbuster debut, speculative interest has returned to the broader space sector. SPCE stock is up 32.67% year-to-date and 45.02% over the past year — though it's still well below the heights reached during previous retail-driven rallies.
Whether this golden cross turns into a sustained uptrend remains to be seen. But while Wall Street debates whether SpaceX's valuation makes sense, technical traders may already be finding opportunities elsewhere in the space economy.
