Virgin Galactic, $SPCE, has been extremely quiet the past two months. After a major move higher in January and February, it has been consolidating sideways on low volume as the Nasdaq has been roaring upwards. Sometimes, it's easy to forget about a stock when it moves sideways. However, these stocks are often setting up for fantastic moves that leave you wishing you'd kept an eye on them. Looking at the Bollinger Band Width, it has really been tightening up.
Volatile stocks that go through periods of extremely low volatility usually set up for strong moves (this can occur in either direction). From a risk to reward standpoint, SPCE is also by its 200-day moving average. If it falls below this key support area, a trader can be stopped out for a small loss. However, it it clears the $17.50 range it may move like it did in early 2020. There are no guarantees when trading, but when I see a stock with a fantastic risk to reward, I always make a note to keep it on my watch-list.
Full Disclosure: Virgin Galactic is a stock I currently own.
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