when it rains it ..., page-28

There IS demand, just not at higher prices.

Economics tells us that buyers will buy more of an asset at lower prices to maximise their value for money.

There IS supply but not at lower prices.

Economics tells us that sellers will sell more at higher prices to maximise their profit.

Economically speaking the SP has found an equilibrium point at 81-82c.

The volume has reduced that indicated there may be little supply left at these prices in the market. Ie. The sellers whom found this to be the best profit point for their investment given the information available to them have been satisfied.

If the sellers do not exist at lower prices then the price will have to rise as they demand more for their assets.

Unless of course some short sellers borrow shares and sell them down creating an artificial imbalance in the market to feed demand that always exists for a lower priced asset.

This is why it is important to be mindful of the contrived supply created by short sellers because if they did not create supply through their activities then given stable demand for the asset, higher prices would be the result as buyers would have to pay more for the asset.

So we may very well see higher prices today unless the share is sold short in any kind of volume OR some news exists that gives some current holders a reason to sell and exit the marketplace.

Given that the short sellers have an interest in keeping the price moving down then today they face a choice.

Allow the buyers to bid up if there is no supply here which will reduce their (short) profits as the SP rises OR borrow more shares to create supply to absorb demand to keep prices low.

There is always another choice for them which is to close their position which will create demand and increase prices as they are forced to buy and cover their loaned shares.

So yep economically speaking something is about to give Matty.