Virgin Galactics Holdings inc
Currently at $49, Virgin Galactis stock price has risen by more than 108% year to date(YTD) on test flight schedule milestone announcements. The company’s ambition to democratize space travelling in a luxurious fashion seems to be gaining track albeit in a slower fashion compared to the company’s ambitious target.
Morgan Stanley’s price target of $70, implies an additional upside of 40% from $49, reflecting the ultimate bullish case scenario of the company passing all test flight milestones and reaching full commercial operations as early as possible. But the investment bank has warned investors that, in a year with Covid -19 and testing delays investors should be careful as things could go the opposite way. The stock has a street high target of $52 according to TipRanks and a street low of $30.
On the technical side of things, the price has formed a resistance level(R1) around $60, which is a key round number level and a strong psychological level for traders. After rising too far too fast, the price needs to correct due to profit taking and offering a discount to bulls that missed the opportunity to get on board. Following bearish divergence from RSI indicator, price broke purple trendline price and is now heading towards the ichimoku cloud which could act as a dynamic support level.
GW Pharmaceuticals ADR
GW Pharmaceuticals has been one of the most popular stocks in the cannabinoid pharma sector. The stock has risen more than 85% since the start of the year, as the Biden administration took over the White House and Jazz Pharmaceuticals announced the acquisition of the company at the price of $220. The company’s revenues are on the rise and the company has a strong pipeline with phase 2 and phase 3 product candidates which increase the probabilities of additional future revenue growth. Currently the price hovers around $214 as the deal is expected to be concluded in the second quarter of 2021.
Following the rapid and explosive price movement, RSI is indicating a bullish convergence which usually indicates the trend is healthy. Moreover, the ichimoku lagging line remains in open space and far away from past price which supports the indication from RSI. Price however is expected to remain in a tight range until the completion of the acquisition.
Discovery, Inc
After almost a year since the onset of lockdowns due to Covid-19 pandemic, demand for streaming services has soared. Along with Netflix and HBO Max, Discovery’s streaming services are in high demand resulting in revenue growth and strong fundamentals. The stock has risen more than 60% since the start of the year as the company launched its new and highly anticipated Discovery Plus streaming service launched in the US January 4th. The company expects to expand the service to 25 countries within a year. In addition the partnership with Verizon in offering its 55 million customers a free year of ad-free Discovery Plus is a huge step in the right direction for increasing market share further.
Price has remained above the purple trend line so far and way above the ichimoku cloud indicator. The RSI indicator is flashing a bearish divergence which could be an early alert that the bullish trend could slowdown or a correction could be incoming. In such a scenario time will tell whether it will be a buying opportunity of buying the dip, or a deeper correction. However, as long as price remains above the purple line, the bullish trend remains intact. Moreover, the ichimoku lagging line (green) remains in open space and above past price action which usually indicates the trend is healthy for the moment.
