Roughly yeah. Shorts will let up shorting and start buying the stock to help it rally. Once the retail gets into buying frenzy, shorts will start selling into rally. When the rally loses steam, they'll help the SP down. Getting retail to start selling as losses mount thus creating selling pressure. Shorts will just help the SP down when selling starts easing up and help the SP through resistance. At that point: stop losses will kick in and SP will hit new lows where shorts will scoope up shares and cover at profit. That's why there is usually big rally before SP crashes to new lows and where the name 'suckers rally' comes from. the same is true for stocks in uptrend except instos will smash the SP down to scope up shares then help the SP up to sell at profit. That's your general stock trading patterns.
It's important to remember that instos that buy stock and short stock are the same entities. There is no such thing as mythical shorters spoken about on HC in lenght. That's just boogeyman stories. Shorts and longs are same hedge funds and instos.
As far as 16% shorts. They are so high because a lot of experts and instos believe that GXY will be the first out of lithium miners to get mothballed and go into care and management, as far as I'm aware. Whether that will happen or not, remains to be seen. Short positions don't normally hoover at such high percentages from normal price manipulation by instos.
Hope that helps
GXY Price at posting:
$1.02 Sentiment: Buy Disclosure: Not Held
