After suffering a massive 24-hour crash from $135.92 to $123.62 amidst the Thursday, November 5, stock market bloodbath, SpaceX (NASDAQ: SPCX) appears set for further losses and a collapse toward its all-time lows.
Specifically, in an X post published during the crash, trading expert Ali Martinez warned that SPCX shares fell below the mid-range support level of its parallel channel. This drop, the analyst warned, could lead SpaceX stock to plunge a further 12% from the latest close and to $108 – less than $4 above the all-time low of $104.83.
Notably, the November 5 post represented a continuation of a bearish thread published at the beginning of the month.
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Indeed, Martinez warned that the 2 billion SPCX share unlock in October created the pressure that, along with the already-unfavorable technical setup, threatened to send the equity into a freefall.
Does SpaceX stock pre-market rally invalidate the SPCX bear case?
Meanwhile, the Friday, November 6, pre-market might already be calling the bearish warning into question.
Along with multiple other prominent technology stocks, SpaceX is showing signs of recovery and has, by press time, rallied 3.95% from $123.62 at the latest closing bell to $128.50.
Still, the ongoing rise is taking place in a comparatively low-volume environment and came after an extraordinary bloodbath, raising the question of whether it can sustain itself into the regular session, let alone into the coming weeks.
For example, a different trading expert, Michael Bento of Valois Capital Management, wrote an X article late on November 5, explaining that the overall setup indicates a 95% probability of a two-session bounce.
Still, the imminent rally the analyst is expecting offers little silver lining since he also explained that this volatility will not translate into a major bullish breakout and that, as he put it, ‘we aren’t done selling’.
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Furthermore, Bento appears to concur with Ali Martinez in one more bearish way. Both trading experts stated on Thursday that the artificial intelligence (AI) bubble is either bursting or has already burst.
Featured image via Shutterstock
