BlackSky Technology Inc (NYSE:BKSY) shares are surging over 10% this Thursday. The stock reached a new 52-week high of $37.32 during the session.

Investor enthusiasm stems from sector-wide tailwinds and recent multi-million dollar government awards.

The Nasdaq is up 0.37% while the S&P 500 has gained 0.13%.

• BlackSky Technology stock is showing exceptional strength. What’s fueling BKSY momentum?

Space Sector Consolidation Rumors

Space-related stocks are ripping higher following reports that Amazon.com Inc (NASDAQ:AMZN) may explore an acquisition of Globalstar, Inc. (NYSE:GSAT).

This speculation has increased investor appetite for the entire sector. Traders are also eyeing a potential SpaceX initial public offering and the successful NASA Artemis II mission as catalysts.

Major Government Contract Momentum

On March 31, BlackSky secured a $99 million U.S. government IDIQ contract. The multi-year deal focuses on advanced, next-generation capabilities. The company received an initial $2 million to accelerate design for large aperture optical payloads.

Technical Analysis

BlackSky is pressing the top of its 52-week range, sitting just under the $36.90 high. The stock is trading 24.4% above its 20-day simple moving average (SMA) and 56.2% above its 100-day SMA.

Over the past 12 months, the stock is up 405.34%, which shows this has been a powerful multi-quarter trend rather than a one-week story.

• Key Resistance: $37
• Key Support: $29

BKSY Stock Price Activity: BlackSky Technology shares were up 10.81% at $36.59 at the time of publication on Thursday, according to Benzinga Pro data.

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