Virgin Galactic stock price gained 5.6% after the close Thursday after the space tourism company posted Q2 results and announced the return of ticket sales.
Virgin Galactic Holdings Inc (NYSE: SPCE) finished Thursday’s official trading session at $31.53, higher by $0.75 (+2.44%). Although, the real action came in extended trading when the stock jumped 5.61% to $33.30.
After the close, the company delivered its second-quarter trading update, revealing it would restart ticket sales with seats starting at $450,000.
“We have a purposeful range of product offerings to satisfy the different ways people will want to share this experience of private astronaut flights,”
Virgin Galactic CEO Michael Colglazier.
Despite the company reporting a wider-than-expected loss of $56 million, investors focused on the positives, sending the Virgin Galactic stock price skywards.
As a result, the technical outlook has improved. For the last three weeks, the stock has been strangled by a tightening triangle formation. Basis the last trade, the price has now broken out to the upside.
The daily chart shows several positive developments. Firstly, SPCE is above the 100-day moving average at $30.52 and the 200-day at $30.96.
Furthermore, the price has cleared the descending trend line resistance at $32.25.
If the Virgin Galactic stock price closes above the pattern today, it will confirm the bullish breakout. This should lead to a test of the 50 DMA at $36.44, around 15.5% higher than yesterday’s official close.
However, the bullish outlook is dependent on SPCE remaining above the longer-term averages. And on that basis, should the price fall below $30.52, it will invalidate the view.
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