During the "Lightning Round" of Mad Money Thursday evening one caller asked about Virgin Galactic Holdings (SPCE) : "I don't see anything in the short term that tells me that one is a winner," Jim Cramer said. I find this interesting as one subscriber to Real Money also emailed me this week asking for my thoughts.
Let's check out the charts of SPCE.
In this daily bar chart of SPCE, below, we can see that prices have been bouncing off the $15 area the past several months. Prices have been trading all around the 50-day moving average line and the 200-day moving average line.
The trading volume has been uneven and the On-Balance-Volume (OBV) line shows a rising pattern over the past 12 months. The Moving Average Convergence Divergence (MACD) oscillator shows little in the way of "trend strength" as it has been hugging the zero line.
In this weekly chart of SPCE, below, we can see a more positive looking picture than the daily chart above. Prices are above the rising 40-week moving average line.
The weekly OBV line is constructive and the MACD oscillator is crossing to the upside for a new buy signal.
In this daily Point and Figure chart of SPCE, below, we can see a slight downside price target.
In this weekly Point and Figure chart of SPCE, below, we can see a potential price target in the $36 area.
Bottom line strategy: If we look hard enough we can find some positive signals on the charts of SPCE but that is not the way I try to find recommendations.
