XJO 0.99% 7,896.9 s&p/asx 200

Shorts close positions after a stock moves higher - not at the...

  1. 9,357 Posts.
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    Shorts close positions after a stock moves higher - not at the bottom.

    The bottom fishers (knife catchers) are usually the first.  If a bit of "big money" comes in then and pushes the stock higher, shorts must start to cover.

    They're not usually the ones to finish a down trend.

    But - you're right about the current position as likely to be a good spot for a short covering rally to start.

    Here's the monthly chart for AGO.



    All time low for AGO was back in July, 2005.  It was then at 0.17 cents.  Today it is close - got to 0.2.

    Yesterday I mentioned that I thought the IOs might see some speculative buyers coming into the market.  Looks like they timed it right.  Maybe.

    Redbacka
 
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