SpaceX shares closed at $108.37 on July 31, marking a nearly 20% decline from their June IPO price of $135. Investors are focusing on the company’s upcoming earnings report and a looming wave of unlocked shares rather than its recent defense contract.
Since debuting on Nasdaq on June 12, the stock has been stuck in a downward trend. Technical charts reveal a pattern of lower highs and lows, with SPCX trading under its 50-period exponential moving average at $114.62. This suggests sellers are currently dominating the short-term momentum. The relative strength index hovers around 38, indicating weak momentum but not yet signaling an oversold condition.
Key Levels and Outlook
The stock has immediate support near $107-$108. A drop below this zone could bring the $100 psychological level into play. On the upside, reclaiming $114.62 and moving past $120 would increase the chance of challenging the IPO price again. A bearish technical model from Market Wave Investor projects a potential buying range between roughly $48 and $86, though this is speculative and lacks a clear timeline.
Adding pressure, SpaceX will report its second-quarter earnings on August 4, the first since going public. Investors will watch closely for updates on Starlink's subscriber growth, launch revenue, spending patterns, and the company’s AI initiatives. This report also kicks off a period where approximately 911.5 million shares, held by employees and early investors, become eligible for sale, potentially flooding the market and weighing on the share price further.
This content is for informational purposes only and should not be considered financial advice.
