SPCE: Huge Short Opportunity
What happened?
Sir Richard Branson risks losing his grip on Virgin Galactic as he continues to sell down his stake in the space tourism venture to fund his pandemic-hit businesses.
The British Billionaire Richard Branson sold approximately 4% of his space company Virgin Galactic. Branson sold about 10.5 million shares through a firm he controls. Although he owns less than 18% of the company, he remains the largest shareholder. Branson will use the money to support existing and develop new enterprises. Sir Richard has already sold Virgin Galactic shares: in April 2021 for about $150 million, in 2020 for $300 million.
Branson can appoint the three board members if Virgin and former investment partner Aabar Space retain more than 50% of their original stake in the company. After the past sale, the British billionaire owns 50,6% of the company.
Technical analyses
Daily chart
Virgin Galactic stock is moving in the rising channel. Sometimes it gets hyped and pumps but always returns. At the moment, this stock gives us a huge opportunity to open a trade. The price didn’t close the gap at $21, and the rule says that every gap should be closed. Lately, the price might go to the bottom line of the channel. If it stays inside the channel, traders will be provided with a good entry point for a long trade. Otherwise, it will fall to the $10-12 support range.