Insignia Systems (ISIG) Stock: Here’s Why It’s Climbing

Insignia Systems ISIG Stock News

Insignia Systems, Inc. (NASDAQ: ISIG) Insignia Systems is making a run for the top in the market this morning. However, if you’re looking for press releases or SEC filings, you’ll be hard pressed to find a catalyst for the run. So, what’s the deal?

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Here’s Why ISIG Stock Is Flying

What we’re seeing from Insignia Systems is almost exactly what we saw on Tuesday of last week. The stock was trading around the $0.82 per share point, then started to skyrocket before coming back to reality over the next several trading sessions.

On Tuesday, the catalyst was clear. Cable Car Capital and The Funicular Fund purchased large holdings in the company. Cable Car snapped up 610,000 shares of ISIG, while The Funicular Fund purchased 585,000 shares.

Following the SEC filing, the stock rocketed. After all, smart money tends to follow big money and with two big money moves into ISIG stock, investor excitement was riding on highs.

So, what’s the deal today?

The stock market is a very cyclical place to be. After dramatic gains, investors tend to lay off and the stock begins to fall. That was the trend we saw throughout the end of last week in Insignia Systems. So, why is the stock climbing?

As ISIG came to a close on Friday, it was trading at about the same price it was before the dramatic run seen on Tuesday. This created a psychological barrier, known as support, that made many investors believe that there’s only one way to go, and it’s up.

Of course, supply and demand plays a huge role in the cost of shares of any stock. With so many believing that the stock simply can’t fall below that $0.82-$0.83 point, demand for shares this morning is high, sending the stock for the top.

The Bottom Line

The bottom line here is a simple one. While there are no fundamental catalysts to speak of with regard to the run in ISIG stock, there are technical signals suggesting that big gains are ahead. So, technical traders, trading bots, and algo traders are jumping on the bandwagon, leading to dramatic gains yet again.

If you plan on playing this move, keep in mind that timing the market is difficult, even for the experts. While ISIG stock may represent a strong long-term opportunity (as Cable Car Capital and The Funicular Fund obviously believe), it also may represent a significant risk in the short term considering current volatility. So, if you do play this run, please be cautious.

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