Space Exploration Technologies Corp (NASDAQ:SPCX) shares are falling Thursday, giving back part of this week’s rally after a wave of short covering fueled the move higher. Here’s what you should know.
- SpaceX stock is feeling bearish pressure. Why are SPCX shares down?
Short Interest in SpaceX Collapses After August Rally
Short interest in SpaceX stock tumbled to about 11% of the company’s publicly traded shares Wednesday, down sharply from a peak of 34% just a week earlier, according to S3 Partners data cited by CNBC.
That decline reflects two forces working together: bearish investors have been closing out positions, and the stock’s tradable float expanded significantly after its first major lockup expiration. Investors covering short positions must buy back shares to exit, which can quickly add fuel to a rally. The decline in short interest followed a sharp move from the stock’s Aug. 3 low.
SpaceX is currently trading well above its key moving averages, indicating strong bullish momentum. The stock’s position is particularly notable as it is trading 17.5% above its 20-day SMA and 16.3% above its 50-day SMA, suggesting a solid upward trend.
The RSI is currently at 58.34, which is considered neutral territory. This level indicates that there is still potential for upward movement without immediate risk of a pullback. MACD is also above its signal line, signaling bullish momentum despite Thursday’s pullback.
Currently, there are no clearly defined support or resistance levels, but the $135 IPO price is likely to act as a key line in the sand. It should provide some support if shares continue to move lower. Technical indicators suggest a bullish trend, but traders should be alert for continued volatility given the continued share unlocks expected throughout the remainder of the year, with the next unlock taking place on Aug. 20.
SPCX Shares Are Dropping
SPCX Price Action: SpaceX shares were down 2.63% at $142.30 at the time of publication on Thursday, according to Benzinga Pro.
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