bullish falling wedge and other ta

Started a new thread because the others were getting a bit long. Last two posts, on two different threads, mentioned TA. Some thoughts:

This post (http://hotcopper.com.au/post_single.asp?fid=1&tid=1766247&msgno=8219287) by redbacka shows a bullish falling wedge forming on ILU, associated with flat OBV. He points out the strong sp performance the last time ILU was heavily shorted.

ILU is currently heavily shorted with over 10% outstanding shares. Most others at this level of shorting are retailers (eg DJS). Is ILU the only resource stock shorted so heavily?

Presumably the shorters think that ILU will suffer a massive downgrade in profit based upon softness in (especially) housing markets. I think this is too simplistic. For a start, ILU's products aren't just for the housing market. Secondly, ILU says that the mineral sands market is very tight with no new supply coming on for a few years. Therefore with ILU's market dominance they can maintain product pricing - a little bit of OPEC as one poster mentioned earlier.

Also, ILU has pointed out earlier demand softness and stated that most customers had destocked already. Presumably these customers will need to restart orders if their stockpiles are low?

One would also think that there is limited further downside in the share price from these levels.

Can anyone report on the level of outstanding shares shorted over time - has this decreased or increased since the beginning of May?

Any other TA appreciated.