Velo3D Inc. (NASDAQ:VELO) stock plunged Friday as traders cashed in gains following a sharp rally fueled by SpaceX IPO buzz and a newly announced aerospace partnership.
The pullback comes a day after shares surged 34% to $30, with investors appearing to take profits as momentum cooled despite a broadly positive market backdrop. The Nasdaq rose 0.19%, while the S&P 500 gained 0.28%.
Technical Trend Remains Intact
Despite Friday’s selloff, Velo3D remains in a strong long-term uptrend. The stock is trading 21.1% above its 20-day simple moving average of $21.17 and 135.6% above its 200-day simple moving average of $10.88.
The bullish setup is supported by a golden cross that formed in January, when the 50-day moving average moved above the 200-day moving average. Technical analysts often view that pattern as a sign of improving long-term momentum.
