It’s a mixed day in the market, but not for Virgin Orbit (NASDAQ:VORB), which is up 19% as of market close today. It’s just the latest action amid a volatile run for VORB stock. Shares are now trying to take out last week’s high with the rally.
Investors are hoping the stock can trigger that rotation and squeeze the share price higher. If it can, it could potentially put the psychologically relevant $5 level in play — or higher. However, to trigger such a move, bulls needed a catalyst. And now they have one.
Virgin Orbit says it’s still on track for a launch window that opens on June 29 at 10:00 p.m. Pacific at the Mojave Air and Space Port. Monday’s news only helped bullish momentum, as the company announced it could enable future launches from Brazil.
Good News for VORB Stock
According to the company, Virgin Orbit “operates one of the most flexible and responsive space launch systems ever built.” It has “already delivered commercial, civil, national security, and international satellites into orbit.” The firm was founded by Richard Branson, who also founded Virgin Galactic (NYSE:SPCE). Many investors have become familiar with SPCE stock as well.
As for VORB stock, the launch plans slated for June 29 are a clear positive. However, this is not the company’s first launch. It will be its third operations launch and will carry seven small government agency satellites. It’s Virgin Orbit’s fourth overall mission.
Despite the clear positive, it’s the news out of Brazil that seems to sparking the most interest among bulls.
VORB stock ripped higher today on news that it was granted an operator’s license for its LauncherOne launch operations in Brazil. “The license is granted to Virgin Orbit Brasil Ltda. (VOBRA), a newly formed and wholly owned Brazilian subsidiary dedicated to bringing the LauncherOne air-launch rocket system to the Alcântara Launch Center.”
For investors, the biggest question is simple: Can the rally in VORB stock continue amid a bear market in stocks? If it can, the declining 10-week moving average could be in play, followed by $5.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.