Anyone who knows this stock, knows GXY is back in the early/mid 50's next week.
If you were a significant short player sitting there watching 46.5 after lunch contemplating what to do, your options are:
a) The 'double down' strategy.
Try to reverse the trend after 2 massive volume days and 15% gain, which showed how quickly GXY can bounce off a sentiment reversal. Maybe push back hard with a few line wipes and try for a close around 45. But this will require some co-ordination of strategy, which clearly diminished since last Friday and won't exist today. I suspect one of the major short players has left the game, so the risk here is 'going it alone' which won't work as other less sophisticated shorts will be looking to exit.
b) 'The trend is your friend' strategy.
The turnaround is done, with 80M strong buys voting unequivocally across the last 2 days. Try to avoid the short squeeze, hope the asks increase sub 50, and mop up all afternoon. Longs / traders have the ball now and smell good gains from here. There's money to be made holding for the weekend as fresh eyes will look to re-enter GXY on Monday and through the week. But don't leave it too late in the day.
Option b) is the only sensible strategy, so expect to see 49 re-tested this afternoon with a 48.5 close.
Lithium is back baby, and the bulls are running this game.
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.... hypothetical commentary not intended as trading advice 
