The Big Boys, page-689

Hi mel,

yes there appears to be some supply being drawn out at this level, which is not really apparent on the weekly chart I posted below (it shows up better on the daily).
I'm not sure where the majority is coming from (new shorts being set, profit taking from below, or from older stale supply to the left).
I do note there is an old high to the left (from late 2013 to early 2014), which did hold some substantial volumes at the time, and this is the first chance for any shareholders still holding from then, to finally 'get out' at breakeven.
I would expect that much of that stale supply has been sold (for a loss) as price pushed lower, however some holders would have kept on holding for sure, and would have been sitting on substantial losses for quite some time..........and they will probably be looking to exit as soon as 'their' price comes up.....maybe even earlier.
Subsequent price action may give some hints as to where most of this supply is coming from, for example - tight clustering of closes, shakeouts, widespread downbars which do not follow through, and pull backs which continually recover, suggest supply from the left is attempting to be removed or absorbed.
Whereas widespread up bars which do not follow through as expected, low volume narrow spread up bars, price flailing about without direction or intention, confusing price action which is no longer makes sense or is illogical, or a price breakdown through support, all suggest potential profit taking from below and/or new short positions being set.
I lean a little towards the former at this stage.........

Weekly