Virgin Galactic (SPCE) has had an impressive rally after setting all time lows after its IPO in the fall of 2019, and continues to impress as it extends the rally in a wave ((3)) impulse. Up from the 11/25/19 lows at 6.90, SPCE ended a 5 waves cycle on 1/3/20 at 11.90 in wave ((1)) and favored to have ended wave ((2)) on 1/6/20 at 11.06 in a shallow correction.
From there a nest blue (1) cycle ended on 1/22/20 at 19.83 and blue (2) is favored bottomed on 1/27/20 at 15.61. From there a further nest in the form of a red 1-2 and ((i))-((ii)) has been set and a wave ((iii)) breakout occurred on 2/10/20. Wave ((iii))-((iv)) is favored complete with a red 3 top in place on 2/20/20 at 40.49 with a red 4 currently underway. The wave count sequence is currently incomplete and can still reach higher before topping for a red I cycle.
It is important to realize that FOMO/MOMO is behind an extended impulse like this and using proper risk management is absolutely essential when trading or investing in a stock such as SPCE that has enjoyed 500% gains since the lows on 11/25/19.The Elliott Wave counts can evolve quickly, be sure to have your stops in and define your risk when trading and investing.
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