SpaceX: Relief Rally or Trend Reversal?Space Exploration Technologies CorpBATS:SPCXCapitalcomEarlier in the week, investors were focused on rising AI spending and the impending post-IPO lock-up expiry. By Friday, attention had shifted towards accelerating AI revenues, improving returns on AI investment and the fact that insiders hadn't rushed for the exit. Whether that change in sentiment develops into a broader trend reversal is now becoming a question for the chart rather than the headlines. The narrative has changed SpaceX's first quarterly results as a public company gave investors plenty to think about. Revenue almost doubled compared with a year earlier, supported by continued growth across Starlink and the company's expanding AI business. Management also argued that its AI infrastructure is beginning to generate returns far more quickly than many had expected, with new compute capacity paying for itself in less than a year. Earlier in the week, however, those positives were largely overshadowed by concerns over the sheer scale of investment required to deliver that growth. Capital expenditure remained exceptionally high, free cash flow stayed negative and investors questioned how long Starlink's cash generation could continue funding such an ambitious expansion. By the end of the week, the conversation had changed. The first post-IPO lock-up period passed without the wave of insider selling many had anticipated, removing one of the market's biggest concerns almost overnight. An analyst upgrade and improving sentiment across the tech sector added further support, allowing investors to place greater emphasis on the company's longer-term growth prospects rather than its near-term spending requirements. A key retest of broken support The technical picture naturally reflects the improving shift in sentiment. After falling almost 30% from the July highs, SpaceX has established a triple bottom around the $107 area before producing its first higher swing high for several weeks. That sequence matters because it interrupts the pattern of lower highs and lower lows that had defined the previous decline and suggests sellers are no longer exerting the same degree of control. Friday's break above the early August swing high strengthened that message further by confirming the first meaningful higher high of the recovery. On the four-hour chart, the 9-period EMA has also crossed above the 21-period EMA, with both averages now beginning to turn higher. While moving averages should never be viewed in isolation, they reinforce the view that short-term momentum is becoming increasingly constructive. The next technical challenge now comes into view around $150. When that level broke in July it triggered an aggressive acceleration lower, making it one of the most important technical reference points on the chart. Markets often revisit former support after a major breakdown, and the reaction around those levels can provide valuable insight into whether sentiment has genuinely improved or whether sellers are simply waiting for higher prices to re-enter. If buyers can continue defending higher lows as the recovery develops, attention is likely to remain focused on that $150 area. How the shares behave once they get there may ultimately tell traders far more than last week's impressive rally. SpaceX Four-Hour Candle Chart Past performance is not a reliable indicator of future results Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.