Velo3D shares are powering higher. Why are VELO shares rallying?
What’s Driving Velo3D’s Stock Surge?The move follows SpaceX filing for an IPO on Nasdaq under the ticker SPCX, aiming to raise about $75 billion at a valuation near $1.75 trillion. Velo3D is viewed as an advanced manufacturing partner to SpaceX, historically tied to 3D metal printing for complex aerospace components like Raptor engines.SpaceX's S-1 also showed a $4.9 billion net loss in 2025, keeping traders focused on whether fresh capital accelerates production ramp plans enough to pull more demand through the aerospace manufacturing stack. Velo3D bulls are effectively trading the "capacity buildout" angle tied to multibillion-dollar NASA and U.S. Space Force programs.Critical Levels To Watch For VELO StockToday's rally is also happening in a supportive market backdrop: Technology (XLK) is up 1.44% and Industrials (XLI) is up 1.07%, while the Russell 2000 (IWM) is up 1.04% with 10 sectors advancing versus 1 declining. That kind of breadth often helps extend momentum trades, and VELO is outperforming those benchmarks on the session.From a trend perspective, VELO is still in a strong uptrend across timeframes, up 551.93% over the past 12 months and trading well above its major moving averages. The stock is 39.7% above its 20-day SMA ($15.68) and 120.8% above its 200-day SMA ($9.92), which keeps the longer-term trend pointed up but also leaves it "stretched" if buyers cool off.Momentum is best framed by MACD here: MACD is above its signal line and the histogram is positive, which suggests upside pressure is improving versus the prior downswing. In plain terms, when MACD is above the signal line, it usually means selling pressure is fading and trend-followers are getting more comfortable staying long.The bullish structure is reinforced by the 20-day SMA staying above the 50-day SMA, and the golden cross that printed in January keeps the longer-term trend bias constructive. One thing to keep in mind is the stock pushed into overbought RSI territory in May, which can line up with choppier follow-through after sharp runs.
