The U.S. District Court for the Eastern District of New York granted preliminary approval for a settlement that will see Virgin Galactic’s insurers make a $2.75 million payment to the company, which is expected to lift some of the litigation overhang that has been affecting the stock.The settlement, approved on May 19, 2026, resolves two longstanding shareholder derivative lawsuits, allowing the company to move forward without the burden of these claims. The legal clarity appears to have attracted momentum buyers, contributing to the stock’s rise following a 19.53% increase on Thursday.Technical AnalysisSPCE is extended versus its trend gauges, trading 63.1% above its 20-day SMA ($2.89) and 48.8% above its 200-day SMA ($3.17), which is the kind of separation that often shows up late in a sharp run. That distance can stay elevated in a squeeze, but it also raises the odds of quick pullbacks if buyers pause.RSI is the cleanest momentum read right now: at 78.65, it’s overbought, meaning the stock has been rising fast enough that it’s statistically “stretched” versus its recent pace. That lines up with the timing note that RSI pushed into overbought territory in May, after coming out of an oversold condition back in February.Trend structure is mixed under the hood: the 20-day SMA is above the 50-day SMA (a bullish near-term crossover), but the 50-day SMA remains below the 200-day SMA following the death cross in January. In other words, the short-term trend is hot, while the longer-term backdrop is still working to repair.