Virgin Galactic Stock Slides As Space Stocks Cool After Monday's Rally

Virgin Galactic Holdings Inc (NYSE:SPCE) shares are trading trading lower on Tuesday as space‑related stocks give back some of the strong gains they logged on Monday. Virgin Galactic Hldgs shares are under pressure. Why is SPCE stock retreating? What Happened: The pullback follows a big surge to start the week after President Donald Trump signed the "Ensuring American Space Superiority" executive order. The directive shifts U.S. space policy toward a commercial‑first approach, outlining targets such as a Moon return by 2028, a permanent lunar base by 2030 and attracting $50 billion in private investment. By emphasizing commercial contracts over traditional cost‑plus government deals, the order is widely viewed as a positive for publicly traded space companies. Despite today's dip, the sector has been gaining momentum heading into 2026, fueled in part by growing buzz around a potential SpaceX IPO. Andrew Chanin, CEO of Procure Holdings (NASDAQ:UFO), told Benzinga that investors are hunting for undervalued space names, and a SpaceX debut could lift sentiment across the entire industry. Technical Analysis: Virgin Galactic is currently trading below key moving averages, indicating a bearish technical setup. The stock is trading 1.7% below its 20-day SMA, 3.9% below its 50-day SMA, and 1.1% above its 100-day SMA, which suggests mixed signals in the short to medium term. The RSI is currently at 51.54, indicating a neutral momentum state. This level suggests that the stock is neither overbought nor oversold, meaning there could be potential for either upward or downward movement depending on market conditions. The MACD remains below its signal line, pointing to weak momentum and the potential for further downside. Traders should keep an eye on support at $3.00 and resistance at $4.00; a breakdown below support could extend the downtrend, while a breakout above resistance would hint at a shift in sentiment. The golden cross in October, when the 50-day SMA crossed above the 200-day SMA, typically suggests a longer‑term bullish setup, but recent price action shows the stock is still struggling to capitalize on that signal. Over the past year, SPCE has fallen 40.60%, underscoring persistent challenges and weighing on investor confidence. Positioned at 31.6% of its 52-week range, the stock is closer to its lows than its highs. This positioning highlights the challenges SPCE faces in regaining upward traction in the current market environment. SPCE Price Action: Virgin Galactic shares were down 2.16% at $3.62 at the time of publication on Tuesday, according to Benzinga Pro. Read Next: Virgin Galactic Teams Up With US Lab To Boost High-Altitude Imaging Tech Image: T. Schneider/Shutterstock