SpaceX stock reached $137 in premarket trading on Wednesday, hovering just above its IPO price of $135 and Tuesday's low of $135.52. A falling wedge pattern on the hourly chart indicates a potential rebound target of $158.
Recent Price Movements
Since peaking at $225.64 on June 16, Space Exploration Technologies Corp. (SPCX) has seen a nearly 40% decline. By Tuesday, the stock closed at $136.08, down 2.20%, marking a total decline of $89.60 or 39.69% from the June peak. The stock has lost two key support zones over the past four weeks, with a notable rejection at the $168 to $171 area in mid-June, which has since turned into resistance. A subsequent failure to hold the $149 to $153 support zone on July 8 capped any brief recovery attempts.
Technical Indicators and Upcoming Events
The current hourly chart presents a nuanced picture for SPCX. Following a rejection near $176 on July 1, the stock has formed a falling wedge, a technical pattern historically associated with upward price movements. The price target from this pattern sits at approximately $157.89, which is around 15% above the current trading level. However, for this projection to materialize, buyers must reclaim the $149 to $153 resistance zone.
- Recent lock-up tranche of 20% expected around Q2 earnings in late July.
- SpaceX's first bond issuance valued at $25 billion in June.
Analysts from Evercore ISI have initiated coverage on SpaceX, offering an Outperform rating with a target price of $230, aligning closely with the broader consensus of $236. The upcoming Starship Flight 13 on Thursday represents a critical test for the stock's future trajectory, as it aims to carry 20 functional Starlink V3 satellites, significantly increasing capacity. A successful mission could trigger the anticipated wedge breakout, while a failure might lead to a significant drop below the IPO price, indicating further price discovery with no chart support.
This material is informational and not financial advice.
