The solid supply at 79 cents was seriously dented at the close with some relatively strong buying appearing for a change. The 79/79.5/80 level is pretty congested not unexpectedly with 80 cents a really significant support and resistance level for DNA going back to 2013 (see chart).
Flipping 80 cents from resistance to support is a seriously big deal I believe and the instution/s have been strategically playing the channel between 55/60 cents and 80 cents very profitably for over 6 months now. When DNA broke 80 cents back in late December 2014 through early January 2015 there was a huge jump in short interest from about 2% to nearly 4% in a couple of weeks to kill the breakout.
Sine then we have seen the exploitation of this channel and the thwarting of any attempt to break past 80 cents. When DNA broke 80 cents again in late May the usual reversal almost happened but this time it went into a consolidation pattern as buying support did appear for a change and the sellers have had problems pushing the price below 75 cents despite consistent shorting averaging around 250K/day over this period..
We have entered another bulls V bears battle again at 80 cents and there is still a large volume of short interest overhang of around 20M shares so I don't expect the bears to necessarily roll over this time but it looks like the conditions are more favourable for a break with the potential re-rating in the offing and strong support from Bell Potter.
The next couple of days are going to be really pivotal. My hope is that a break above 80 on volume will convince the short interest holders that the game is up and they will seriously start to cover and give the break some grunt. The wild card at the moment is the market which is jittery whilst the Grece thing is in the headlines.
