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 favoured 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 favoured 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 favoured 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.
