Richard branson's space tourist company virgin galactic has had a wild year. In january. Its stock was trading at 11, then in february it was all the way up at 42 and in march it had fallen down to nine dollars at the time i'm making this video the stock is trading just above 17. This volatility proves that virgin galactic is capable of making you a considerable amount of money, but the key question is: is it time to buy, sell or hold what is going on moon gang? I hope you're having a downright amazing day.

My name is matt and in this video i will be discussing some recent developments that make me personally think it is an excellent time to buy more shares of virgin galactic stock, make sure you stick around until the end, because i will also be sharing some quick Thoughts about the current state of the overall stock market, if you enjoy this type of stock market related content and want to be a part of an awesome community, join the moon gang by hitting the subscribe button and don't forget to turn on your notifications. So you don't miss any of the new videos. Alrighty. Then, let's get started.

I wasn't kidding when i said virgin galactic, which trades under the stock symbol. Spce has had a wild year. It went shooting up, it came tumbling down, it went up again and it's currently sitting in the middle of this consolidation range as things currently stand. Virgin galactic stock is up 47.5 on the year, but with that in mind, the stock is currently down 33.

Since late july, so what is going on that makes me think that this is an excellent buy-the-dip opportunity. The answer is that virgin galactic's bullish sentiment is starting to increase oliver chen from cowan initiated coverage on virgin galactic with an outperform rating and a stock price target of 22. With this announcement, he wrote that virgin galactic is uniquely positioned to benefit from the growing consumer interest towards luxury experiences, especially among high net worth individuals. We believe a substantial growth opportunity lies ahead with the commercial space flight business, which already has approximately 600 reservations.

It's always nice when an analyst agrees with your bullish stance, but i want you to know that he's not randomly making up these opinions. He has the data to back up his stance. A cowan survey found that 39 of people with a net worth of more than 5 million dollars, are interested in paying at least 250 grand for a virgin galactic flight to the edge of space. Now i don't know about you, but i don't have 250 large ones to take a flight into space, but if mr richie, rich and his wife want to, it could really benefit the stock.

Who knows if i own enough shares and the stock really takes off? Maybe one day i'll be able to afford this price tag myself anyway, my own poor spending habits aside. This survey shows that virgin galactic is well positioned in a large sector that has considerable demand to make things even better. Oliver chen isn't the only analyst who thinks this analysts at ubs initiated coverage on virgin galactic with a buy rating and are predicting that the stock will climb more than 50 percent over the next year as space tourism eventually becomes an 800 billion dollar industry by the Year 2030. here are some other important details that you should be aware of.

If you are or interested in becoming an investor ubs sees virgin galactic as the only way for consumers to gain entry into the 560 member astronaut club in the next five years. This exclusivity is definitely enticing to rich people and has helped in creating a robust backlog of customers. Although there will be competitors virgin galactic has an advantage in its lifelong brand connection, in addition to an operating model supporting a uniquely high fly rate. All of this together has prompted ubs to put a price target of 25 dollars per share on virgin galactic.

Honestly, i think that this price target is a little low. My reasoning is that virgin galactic is well positioned and is also the only publicly traded company in the 3 billion a year space tourism industry, and on top of that, the space economy is predicted to be worth more than 800 billion dollars by the year 2030.. I truly think that virgin galactic will be able to reap the rewards of being in the right place at the right time. I know that all this has a little bit of a longer time horizon, but there are some important things you should be paying attention to.

In the near future, virgin galactic plans to conduct a space flight test on october 22nd, the flight will be the first of two testing the spaceship 2 spacecraft system. If successful virgin galactic plans to fly their founder, sir richard branson in the first quarter of 2021, this was originally planned to happen in 2020, but it was postponed and when that was announced, the stock took a hit. If richard branson's flight is delayed again, i would expect another dip in the stock's price, but if it goes off without a hitch, i would expect the bull camp to be very happy once again. This is for the first quarter of 2021, but the next test flight will be on october 22nd.

In between these two events, i would highly recommend paying attention to virgin galactic's next earnings report, which is on november 17th. These announcements are pretty useful in terms of letting us know if everything is going according to plan or if they somehow got derailed from a technical perspective. I personally think that it's an excellent time to invest into virgin galactic, because there's a very favorable risk to reward ratio. There are two key support levels pretty close by the first would come just below 15 and the second would be just above 14.

I personally own shares of virgin galactic at an average cost just around 16.5 and i plan on cutting the position if this bottom support is given up. But if that doesn't happen, i plan on taking some of my profits off the table at key levels of resistance. The first would come at 21. The next would be the high from july at 27.5, and the third would be the all-time high at 42.5.

I think this does a good job at depicting how the current risk to reward is favorable. The risk is relatively close by and the reward is sizeable based on the most recent close. The first analyst had a price target of twenty two dollars, which would be a twenty six percent gain, and the second analyst had a price target of twenty five dollars, which would be a 44 gain. That's not too shabby when you realize that the bottom support would be a decline of less than half of that.

Obviously, though, nothing is guaranteed. So please trade with caution, especially because the overall market doesn't look the best right now. This is the daily chart for qqq which tracks the nasdaq 100 a tech heavy index. As you can see since april, this index has been in an upward channel, also known as a bear flag.

This technical structure is referred to as a bear flag because they commonly break downward. This doesn't always have to happen, and i truly hope that this is just a fake out and we get right back up into this channel. But if this bottom trendline serves as resistance, it might not catch itself until 251. If this scenario plays out, it would have a bearish effect on most technology-based companies.

I have absolutely no clue if this will play out. I just want you to be aware of it, because the technicals don't look the best at the moment, thanks for watching to this point in the video, i truly appreciate your support. I would love to know your thoughts on both virgin galactic and the overall market feel free to. Let me know in a comment below if you would like to join a group of people where we talk about this type of stuff on a daily basis.

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