I can see your reasoning but it depends on how expensive the move really is. The market depth doesn't reflect how many shares actually get bought and sold. There are lots of triggers, both buy and sell and off the board trades. My data shows the ASX sales today were over 3.5M shares and sold somewhere between AU$6.1M and AU$6.4M but the share price closed up 0.9% from yesterday. The short play is only effective if there is exhaustion of buyers and accelerated by stop loss triggers. But there will at some point be a price which attracts so much attention that other investors and traders will jump on board, resulting in an impenetrable wall of support and if you're in a short play, you could lose a lot of money. The closer you get to that price, the stronger the support so for the accumulation to take place it needs to happen at a higher trading range where it is easier to trade and the support isn't so great. But at these levels lots of other traders could be trying to trsade the stock.
It isn't as easy as short a few lines of market depth and buy them all back unless the support was exhausted first. It takes a while and would cost millions, not tens of thousands.
Will have to see where the high volume days take the SP.
Good luck.
GXY Price at posting:
$1.77 Sentiment: Buy Disclosure: Held
