I doubt we have seen the bottom at $1.895.
Everyone (even ASB) knows fundamentally its worth closer to $10 than $2, however they are shorting the sector and Galaxy chart is a dream for them at the moment.
I see a bottom at $1.80. This will rebound and hard. The preceding 4 months will see us back above the high of $4.54.
The issue for the shorts is this:
a) Hold existing positions - continue to run the risk of a squeeze for another 10%? bearing in mind shares are borrowed and attracting a decent rate of interest (no doubt calculated daily)
b) open new positions - Possible return if MC blows up or LuckyDOG gets his own way and management are over thrown.
c) Close open positions - Most would be in profit even after allowing for the interest accrued.
Issue being, that there is a lack of volume for option c. Leaves option a and b in play, both of which are not pretty for shorts. RISK V RETURN. The pressure is mounting daily.
Sure they might smash it one last time down to the base line but really if you can afford to hold through this its a dream come true.
Option d. Add more shorts to the the current 16%. Squeeze on low volume, runs to $10
Dont think it cant happen. That's what they want you to believe. Fingers crossed Tony has a little surprise for them.
Enjoy the weekend.
