The last session of Signature Group Holdings, Inc. (PINK:SGGH) was marked by a 4% increase in the value of the company’s stock. The price surge happened on a trading volume ten times higher than the daily average.
SGGH closed the session on Friday at $0.344 per share after more than 1 million shares of SGGH common stock changed hands during the day.
This scenario happened after SGGH issued a press release on the Marketwire system. It announced that its subsidiary, north American Breaker Co, had obtained $16 million in debt financing from Pacific Western bank.
After SGGH finished higher on the issued news, market participant may have started wondering if this will be the end of the long downtrend of SGGH stock. [BANNER]
The plunge of SGGH started at the beginning of July when the company’s shares were still sold at $0.7 per share. More than three months later, SGGH is being sold at half that price.
In September, there was a positive divergence between the stock’s consolidation period and a climbing MACD indicator. However, the technical set up didn’t work out and the stock took another deep plunge down.
Still, it seems early to define whether SGGH is undergoing a short-term technical bounce from the 52-week low which was hit 2 days ago, or a more convincing turn in the stock’s chart is at hand.
