AST SpaceMobile $ASTS Candle Over Candle Reversal, Bullish Option Flow

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Bullish option flow was detected in AST SpaceMobile $ASTS stock on November 7, 2022. The stock has also formed a candle over candle turn off of multiple bottom support.

AST SpaceMobile is building a space-based cellular broadband network to work directly with standard, unmodified mobile devices.

Bullish Option Flow In AST SpaceMobile $ASTS Stock

AST SpaceMobile stock option flow on November 7, 2022, in a table with the text TIME SYMBOL EXP STRIKE C/P SPOT DETAILS TYPE VALUE 11/04/22 ASTS 11/11/22 7.5 CALL 6.57 500@0.2_A SWEEP $10K 11/03/22 ASTS 12/02/22 6 CALL 6.27 166@0.8_A SWEEP $13.3K 11/03/22 ASTS 12/02/22 6 CALL 6.28 183@0.8_A SWEEP S14.6K 11/02/22 ASTS 01/20/23 10 CALL 6.56 300@0.44_A BLOCK S13.2K 10/31/22 ASTS 11/04/22 6.5 CALL 6.82 200@0.5 A BLOCK S10K

Make sure to review this lesson on option flow so that you understand the image above.

In particular, the January 20, 2023, $10 call option has rising open interest and volume.

AST SpaceMobile January 20, 2023, $10 call option contract with barchart that shows rising open interest and volume.

AST SpaceMobile started with a Buy at B Riley

On October 28, 2022, Mike Crawford of B Riley started coverage of AST SpaceMobile with a Buy rating and $15 price target. A research note written by Crawford tells investors that the company is constructing a global space-based cellular broadband network enabled by large, revolutionary pizza box-shaped satellites. The analyst thinks that the global market is huge, with 5 billion unique cellular subscribers and another 3 billion people who don’t have cell phones.

AST SpaceMobile announces update

On September 10, AST SpaceMobile launched the BlueWalker 3 test satellite into orbit. After launch, the company immediately took control of the satellite and have been ramping up ground control operations and monitoring satellite performance through telemetry, tracking and command antennas. The satellite is functioning normally, and all sensors and actuators are ready. AST SpaceMobile is currently finishing its pre-deployment plan and waiting for the best conditions for solar power generation to deploy the phased array antenna, which is expected to be finished on or about November 10. They do not set the date of unfolding in stone, and it could differ from this estimate.

The company said, “We ended the third quarter with cash and cash equivalents and restricted cash of approximately $199.5 million, a decline of $2.9 million for the quarter. We expect our total operating expenses including certain non-recurring development and engineering expenses to be between $41.0 and $43.0 million for the third quarter of 2022, including $3.0 to $4.0 million of depreciation and amortization and stock-based compensation expense. As of September 30, 2022, we have incurred approximately $92.0 million of capitalized costs (including launch cost and non-recurring engineering costs) related to the assembly, testing and deployment of the BlueWalker 3 test satellite. As of September 30, 2022, we have incurred approximately $43.1 million of capitalized property and equipment costs primarily related to the Texas facilities, satellite antennas, satellite parts assembly and test equipment, and leasehold improvements.”

Kerrisdale Capital says short AST SpaceMobile

On September 15, 2022, Kerrisdale Capital tweeted: We are short $ASTS. A classic 2021 SPAC, ASTS is a $2bn pre-revenue satellite company, hemorrhaging cash trying to bootstrap an absurdly grand vision that has no chance of getting off the ground… Skepticism from the space and satcom experts we interviewed surrounds nearly every aspect of AST’s plan: spacecraft design, quality of service, addressable market, and ability to execute against competition from SpaceX and Apple. Source: https://twitter.com/KerrisdaleCap/status/1570438634272169985

Short-sellers Kerrisdale Capital published a research report here.

Nokia explains how AST SpaceMobile is designed to provide 4G/5G cellular broadband from orbit

Nokia explains how AST SpaceMobile is designed to provide 4G/5G cellular broadband from orbit

Why Vodafone, Rakuten & American Tower want space-based cellular broadband from AST SpaceMobile

Why Vodafone, Rakuten & American Tower want space-based cellular broadband from AST SpaceMobile

AST SpaceMobile $ASTS Stock Technical Analysis

AST SpaceMobile $ASTS stock is in a technical weak downtrend. The stock is coming off a successful multiple bottom test where support has held. The stock is now testing its downtrend channel resistance wall and a breakout above $7.73 could lead to an explosive move higher. With the current negative money flow, we do not expect the stock to run much higher.

AST SpaceMobile stock chart on November 7, 2022, coming off a multiple bottom pattern, testing downtrend channel wall resistance, with a positive MACD and negative money flow.
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