Velo3D Soars 34% on SpaceX Breakthrough—Is This the Start of a New Bull Run?

Summary
• Velo3D (VELO) surges 34.31% to $11.55, hitting a 52-week high of $12.12
• CEO Arun Jeldi confirms deep integration with SpaceX’s Raptor 4 engines and Anduril partnerships
• Technicals show 122.1% above 20-day SMA, RSI at 71.61 (overbought), and a golden cross in October

Velo3D’s explosive intraday rally has thrust it into the spotlight, driven by strategic aerospace and defense contracts and robust technical momentum. The stock’s surge aligns with broader industrial machinery sector gains, as investors bet on additive manufacturing’s role in next-gen space infrastructure. With SpaceX and Anduril as key partners, VELO’s trajectory reflects a confluence of sector tailwinds and technical strength.

SpaceX Integration Ignites Velo3D's Explosive Rally
Velo3D’s 34.31% surge stems from CEO Arun Jeldi’s confirmation of its critical role in SpaceX’s Raptor 4 engine production and collaboration with defense tech firm Anduril. Jeldi highlighted that five major Raptor 4 components are qualified for Velo3D’s platform, with the company already printing parts for the next-gen engine. This positions Velo3D as a linchpin in SpaceX’s orbital data center ambitions, a theme amplified by Elon Musk’s recent IPO hints and Blue Origin’s similar initiatives. Additionally, Q3 revenue of $13.6 million and a reiterated positive EBITDA timeline by 2026 have reinforced investor confidence. Technically, the stock’s 122.1% above 20-day SMA and golden cross in October signal a strong bullish trend, while RSI at 71.61 suggests overbought conditions.

Industrial Machinery Sector Gains Momentum as Velo3D Outpaces Peers
The industrial machinery sector, led by 3D Systems (DDD) with an 8.19% intraday gain, is seeing renewed interest in additive manufacturing for aerospace and defense. Velo3D’s 34.31% surge far outpaces DDD’s 8.19% rise, reflecting its niche focus on high-margin, complex parts for space and defense primes. While DDD competes in broader 3D printing markets, Velo3D’s specialized SupportFree technology and strategic partnerships with SpaceX and Anduril position it as a pure-play beneficiary of the orbital computing infrastructure race. This divergence highlights Velo3D’s ability to capitalize on sector-specific tailwinds.

Capitalizing on Velo3D's Momentum: ETFs and Options Playbook
• 20-day SMA: 122.1% above (bullish) • 50-day SMA: 126.7% above (strong trend) • RSI: 71.61 (overbought) • MACD: Above signal line (bullish momentum)

Velo3D’s technicals suggest a continuation of its upward trend, with key resistance at $12.12 (52-week high) and support at $8.48 (intraday low). Short-term traders should monitor the RSI’s overbought level and potential pullbacks to $9.50–$10.00 for re-entry. The industrial machinery ETF XLI (SPDR S&P Aerospace & Defense) and XLB (Materials Select Sector SPDR) offer sector exposure, though leveraged ETFs are absent. For options, the lack of available contracts means focusing on technical setups: a breakout above $12.12 could target $13.50–$14.00, while a breakdown below $9.50 may trigger a retest of $8.48. Aggressive bulls may consider a $12.50 call option (if available) for a 5% upside scenario, projecting a $13.13 price target.

Backtest Velo3D Stock Performance
The backtest of VELO's performance after a 34% intraday surge from 2022 to the present reveals favorable results. The 3-Day win rate is 62.16%, the 10-Day win rate is 67.57%, and the 30-Day win rate is 89.19%, indicating a high probability of positive returns in the short term. The maximum return during the backtest was 72.63% over 30 days, suggesting that VELO can deliver significant gains following a substantial intraday surge.

Velo3D's Breakout: A High-Velocity Trade with Clear Technical Targets
Velo3D’s 34.31% surge is underpinned by strategic aerospace partnerships and robust technical momentum, positioning it as a key player in the orbital computing infrastructure race. While the RSI’s overbought level and potential pullbacks to $9.50–$10.00 warrant caution, the golden cross and MACD above signal line suggest the trend remains intact. Investors should watch the $12.12 resistance level and $8.48 support for directional clues. Meanwhile, sector leader 3D Systems (DDD) is up 8.19%, reflecting broader industrial machinery strength. For those seeking exposure, a breakout above $12.12 could unlock $13.50–$14.00 targets, making this a high-velocity trade with clear technical benchmarks.