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.
Momentum indicators also remain constructive. The MACD remains above its signal line, while the histogram remains positive. That suggests the broader uptrend remains intact even as shares undergo a near-term pullback.
Traders will be watching whether VELO can hold support near its 20-day moving average. On the upside, resistance sits near $26.50, a level that could cap any rebound attempt.
Earnings And Analyst Outlook
The next major catalyst is expected to be the company’s earnings report, scheduled for Aug. 26, 2026.
Wall Street expects Velo3D to report a loss of 35 cents per share on revenue of $12.56 million.
In the latest analyst action, Lake Street reiterated its Buy rating and raised its price forecast to $20 on May 13.
Velo3D Price Action
VELO Stock Price Activity: Velo3D shares were down 16.53% at $25.55 at the time of publication on Friday, according to Benzinga Pro data.
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