SpaceX Stock Outlook as SPCX Crashes Below Debut Price Despite Nasdaq-100 Inclusion

SpaceX (NASDAQ: SPCX) stock price dropped by 6.43% on July 7, to close trading at $149. The stock now trades below the July 12 debut price of $150, with the drop occurring despite SPCX shares being included on the NASDAQ 100 index on July 7.

SpaceX Stock Crashes to $149 After Nasdaq-100 Inclusion

The SpaceX stock joined the Nasdaq 100 index on July 7. The inclusion happened 25 days after the July 25 IPO, making SPCX the fastest stock to enter the NASDAQ-100.

But the entry to this index did not lure buyers because the SpaceX stock price dropped by 6.43% on July 7. The stock now trades at its lowest since it debuted on NASDAQ on July 12.

However, the drop was not an isolated case because the entire NASDAQ index dropped by 1.77% on July 7 to close trading at 29,173 points after Iran strikes on the Strait of Hormuz caused a sell-off across risk assets.

Still, traders were caught off guard because JPMorgan had forecast that the SpaceX stock would see $4.3 billion in inflows from index tracking funds after the NASDAQ-100 inclusion.

This drop therefore suggests that traders did not view the listing to be a buying opportunity but rather used it as a sell-the-news event, and this made the SpaceX shares drop by 6%.

SPCX Stock Outlook as Bearish Pressure Surges

The SPCX stock price has moved below the support of $150 after much selling pulled the stock price down.

If the selling pressure continues, the SpaceX shares could drop to the June 23 low of $147. A move below $147 could cause the stock price to fall further to the IPO price of $135.

The RSI reading of 35 suggests that the momentum is favoring bears, and this makes it more likely that the SpaceX stock could drop to the June low of $147.

Still, the AO bars that turned green one hour before the market closed on July 7 suggest that the selling pressure that came with the NASDAQ-100 listing is easing.

The easing sell-side pressure has also caused SpaceX stock to increase by 3% in pre-market trading to $151 at the time of writing.

If these gains continue, the shares need to move above the 78.7% Fib level of $164 to confirm that bulls have regained a good grip.

Cathie Wood Buys $7M in SpaceX Shares as Deutsche Bank Targets $255

Cathie Wood’s ARK Invest has purchased the dip after the SpaceX shares dropped to $149 on July 7.

Data from Cathie’s Ark shows that ARK Invest purchased $6.8 million worth of SPCX shares on July 7. This purchase occurred two weeks after ARK Invest purchased another $7 million in SPCX shares on June 26.

ARK Invest is betting on SpaceX after Deutsche Bank forecast that the SPCX shares could rise to $255, with the investment bank adding that the company’s revenue could increase by 95% in one year.

Deutsche Bank also assigned a “buy” rating to the SpaceX stock, saying that the company’s three categories: space, Starlink and AI, do not face any competition.