TradingKey - SpaceX Suffers Six-Day Losing Streak, Retreating to Listing Day Opening Price of $150: Can Bulls Hold the Line?

On October 14 Eastern Time, boosted by potential positive news, space exploration technology company SpaceX (SPCX) rose 0.4% in pre-market trading to temporarily trade at $157.10. Reportedly, SpaceX applied to the Federal Aviation Administration (FAA) to directly increase its annual satellite launches from its Texas launch site from 25 per year to up to 456 per year.

Prior to this, SpaceX's stock price had fallen for six consecutive trading days, pulling back continuously from a recent high of $175 and gradually losing the $170 and $160 levels, with a cumulative decline of over 10%. The core driver was deleveraging in the tech and semiconductor sectors. In early October, U.S. high-tech and semiconductor leaders triggered programmatic selling, prompting capital to temporarily exit high-valuation giants for safety and dragging down SPCX as profit-taking occurred at high levels.

In addition, concerns over capital expenditures for Starlink and Starship have not yet dissipated. Although Starlink's revenue from its network and global users has grown rapidly, the market maintains strict scrutiny over its massive capital expenditures in the second half of the year for in-orbit data centers and Starship Super Heavy rocket iterations, prompting a short-term squeezing out of high-valuation premiums.

Under such pressure, can SPCX hold its technical and position battleground at $150? The $150 level was SpaceX's opening price when it went public on June 12, assembling a large amount of long-term strategic allocation capital from top Wall Street institutions. Once the stock price approaches this level, its forward P/E and market capitalization will return to a highly attractive revaluation zone, with a high probability of triggering strong institutional bargain-hunting buying; therefore, a breakdown is relatively unlikely.

SpaceX stock price chart, Source: TradingView

However, in an extreme scenario, such as a systemic market crash or a plunge in the Nasdaq 100 Index, a meaningful breakdown of $150 by SPCX cannot be ruled out, with secondary defensive support shifting down to the IPO base price of $135.

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