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  • Writer's pictureT. Livingston

SPCE-A Quiet Chart, But Will It Stay That Way?

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.

Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.

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