The Virgin Galatic (SPCE) share price has met with fresh headwinds as owner Richard Branson faces a lawsuit for allegedly sending defective rockets in space on purpose.
A report by Market Business Insider says that an aggrieved shareholder, Thomas Spiteri, is suing Richard Branson and Virgin Galactic for launching prototypes of Unity and Eve into space in an attempt to push up the SPCE share price. The SPCE share price doubled shortly after Branson completed the inaugural human-crewed flight in the summer of 2021. The lawsuit alleges that the launched spacecraft were not flightworthy and meant to serve as prototypes for subsequent safe and flightworthy designs.
A report by Market Business Insider says that an aggrieved shareholder, Thomas Spiteri, is suing Richard Branson and Virgin Galactic for launching prototypes of Unity and Eve into space in an attempt to push up the SPCE share price. The SPCE share price doubled shortly after Branson completed the inaugural human-crewed flight in the summer of 2021. The lawsuit alleges that the launched spacecraft were not flightworthy and meant to serve as prototypes for subsequent safe and flightworthy designs.
Virgin Galactic’s meteoric rise to an all-time high of $62.80 following a successful space flight has been followed by a roller coaster ride on its share price, which has now metamorphosed into a full-scale collapse. It now trades at $7.75 in premarket trading as of writing.
The stock is trading near the 25 November 2019 record low. If the price breaks this level, new record lows will be seen. The breakdown of the neckline of the double top on the daily chart at 15.10 points to a measured move that could take the price closer to the $1 mark than the bulls would love.
On the other hand, a bounce on the 6.90 support tests the 12.27 resistance initially, before 15.10 and 17.57 come into the mix as additional targets to the north.
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This post was last modified on Mar 11, 2022, 14:01 GMT 14:01