Virgin Galactic Holdings (SPCE) has trended lower for more than a year. The share price is near a support zone around $2.18.
This $2.18 area has been tested twice, with buying appearing on both visits. The price is now about $2.40, sitting just above that level.
A key check is whether SPCE can hold $2.18 on a confirmed daily closing basis. Another check is whether price can close higher and continue upwards.
If support holds, the next chart level cited is a descending trendline near $3.47 to $3.50. That trendline has been falling since the October 2024 highs around $8.50 and has capped prior rallies.
One approach described is to enter near current levels and exit on a confirmed daily close below $2.18. Another approach is to wait for a confirmed rebound that creates more distance above $2.18.
The text notes that repeated tests can weaken support, and a third test with heavier selling would alter the setup. The broader trend remains down until the price structure changes.
Looking back to late 2025, we were watching SPCE form critical twin-peak support around $2.18, and that floor has held. The stock has since responded positively, particularly after the successful powered test flight of a new ‘Delta’ class vehicle announced in late March 2026. This catalyst appears to be building the momentum we were looking for off that established base.
For derivative traders, this situation suggests positioning for a potential move toward the overhead trendline. We are seeing a notable increase in open interest for the May and June 2026 $3.50 strike calls, indicating that the market is beginning to price in a test of this resistance. Buying these calls provides leveraged exposure to this potential upside move while defining risk to the premium paid.
However, the $2.18 level must still be respected as the hard stop for this entire setup. A confirmed daily close below this price would invalidate the bullish thesis, and any long call positions should be reconsidered or closed. While short interest has encouragingly declined by over 15% since the beginning of the year, a failure at this support level would likely invite sellers back aggressively.
The primary target remains that descending trendline from the October 2024 highs, which now sits near $3.50. This is the level where past rallies have consistently failed, making it the logical area to take profits on long call positions. If the stock reaches this zone, we would watch for signs of stalling momentum to determine if the long-term downtrend will reassert itself.
More tactical traders could also plan for a potential rejection at that $3.50 trendline. Given that this resistance has held for over 18 months, establishing bearish positions, such as buying puts, could be a valid strategy if the stock shows weakness upon reaching that price target. This would be a play on the continuation of the much larger bearish structure.
