Finbold reports SpaceX stock fell sharply and a trader sees more downside

Sharp decline and bearish setup

Finbold reports that SpaceX, traded as SPCX on Nasdaq, fell hard over 24 hours during the Thursday, November 5 market selloff. The stock moved from $135.92 to $123.62, and the article says this leaves it facing the risk of another drop toward its prior lows.

Martinez warns of a deeper slide

According to Finbold, trading expert Ali Martinez said in an X post during the selloff that SPCX had fallen below the mid-range support level of its parallel channel. He warned that the move could trigger an additional 12% decline from the latest close, which would put the stock near $108. Finbold notes that this would be less than $4 above SPCX’s all-time low of $104.83.

Earlier bearish call and share unlock

Finbold says Martinez’s November 5 post continued a bearish view he had already posted earlier in the month. In that earlier thread, he said an October unlock of 2 billion SPCX shares added pressure, and that the unlock, together with the weak technical picture, could push the stock into a steep decline.

Friday pre-market recovery and questions

Finbold reports that the bearish case may have been challenged by Friday, November 6 pre-market trading. SPCX was up 3.95% from Thursday’s close, reaching $128.50 at the time of publication. The article says the rebound came in a low-volume setting after the sharp selloff, leaving open whether it could last through the regular session or into the following weeks.

Another trader sees a bounce, not a breakout

Finbold also cites Michael Bento of Valois Capital Management, who said in an X post late on November 5 that the overall setup points to a 95% chance of a two-session bounce. Even so, Bento said the move would not amount to a major bullish breakout and added, in Finbold’s words, that “we aren’t done selling.” Finbold adds that Bento and Martinez both said on Thursday that the AI bubble is either bursting or has already burst.