Is Insignia Systems About To See A Short Squeeze? A Technical Analysis

Insignia Systems Inc. (NASDAQ:ISIG) shares were trading higher Wednesday as the stock has been circulating on social media as traders talk about its short squeeze potential. According to Finviz.com, the stock has a 53% short float and a total float of 1.06 million.

Insignia Systems was up 27.76% at $24.30 at last check.

Insignia Systems Daily Chart Analysis

The stock looks to have been rejected at the $30 level in what traders call a sideways channel. This level looks to have held as resistance in the past, and with the $10 level holding as support.
The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing bullish sentiment. Each of these moving averages may hold as a possible area of support in the future.
The Relative Strength Index (RSI) has shot higher since the beginning of the month and now sits at 68. This borders the overbought range and shows the stock is seeing a large amount of buyers compared to sellers.

What’s Next For Insignia Systems?

The stock touched the $30 level again Wednesday, but was unable to cross above the level showing it as resistance. This area may continue to be troublesome for the stock as traders try to push it on a short squeeze. Bulls are looking to see the short squeeze and for the stock to fly past resistance. Bears are looking to see the stock be unable to cross the $30 resistance and fall back below the $10 level.

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