One of the more impressive short squeeze plays of last year, Magic Empire Global (NASDAQ:MEGL) remains on the watch list for plenty of investors. Today’s upside move of more than 40% in MEGL stock provides investors looking for momentum-driven moves with another reason to watch it a little closer.
Today’s impressive move comes on very heavy volume, with more than double the average volume of shares changing hands as of early afternoon trading. That said, there doesn’t appear to be any company-specific news driving this move. Accordingly, this move does seem to resemble many of the previous volume-driven rallies of the past.
There also happens to be another key catalyst investors may have their eye on. As InvestorPlace contributor Larry Ramer pointed out in a recent piece, there’s a lockup expiration set for the end of the month.
Let’s dive into what investors should make of this price action right now.
MEGL Stock Soars Again On Little News
Interestingly, the lockup expiration we covered previously isn’t necessarily bullish for Magic Empire. This expiration means insiders who have been waiting to sell their shares in this company can do just that. With more selling pressure should come significant price decreases, at least in the short term. Thus, today’s price action appears to be rather complex.
While I’m not able to pinpoint the key driver behind today’s rally, there has certainly been a tremendous amount of momentum building around speculative stocks of late. So-called meme stocks have once again been thrust into the spotlight, with retail investors gobbling up shares on anticipation that short squeezes and other near-term catalysts may materialize. The recent surges several top meme stocks have seen have impressed many in the market, myself included. Thus, perhaps MEGL stock could be poised for another rally from here.
I think investors would do best to take caution with MEGL shares. What goes up can come down just as fast (or faster.) And given this lockup expiration approaching at the end of the month, now may be a good time to watch the fireworks from the sidelines.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.