Space Exploration Technologies Corp. (NASDAQ:SPCX) shares are climbing on Monday. They have gained more than 40% since the Aug. 6 low.

But they have reached a resistance level and may consolidate or even reverse. This is why SpaceX is the Stock of the Day.

There is no doubt that SpaceX is revolutionary. But stocks don’t solely move based on fundamental metrics such as P/E ratios or news. They usually move because of the emotions and psychology of the people who are trading them.

SpaceX is no exception.

As you can see on the chart, the shares have previously stalled at resistance around $150. There is a reason for the resistance at this level. You can see on the chart that it was support in June and early July.

Support levels convert into resistance due to trading psychology and emotions.

People who bought shares around $150 thought they made a good decision when the price moved higher. But when this support broke and the price dropped, some of them changed their minds.

They decided that buying was a mistake.

A number of people decided that they would sell their shares around $150 if they could eventually do so. This way they can get out at breakeven.

The sell orders being placed by remorseful buyers have formed resistance.

SpaceX holders are watching closely. Stocks have a tendency to sell off after reaching resistance. This is also because of trading psychology.

Some of the sellers who created the resistance can become impatient and anxious. They decide to reduce their offers because they know the buyers will go to whoever is selling at the lowest price.

The future of SpaceX and AI stocks looks very promising. But traders need to remember that their stocks trade in a market, and markets can move due to the psychology and emotions of the people trading them. It isn’t always related to future prospects.

SpaceX is no exception.

SPCX Stock Price Activity: SpaceX shares were up 5.39% at $147.55 on Monday, according to Benzinga Pro data.

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