GXY (ASX) Chart

Originally posted by zuljin127 ↑

While I'm no expert, I can see how they can short sell only a few hundred thousand shares (losing little to no money if they do it right) and push the price down. Even if they lose tens of thousands of dollars doing that, when the price has been pushed lower and they're able to stock up on potentially millions of shares which are bound to rise 30-40% within the next few months, this is absolutely a worthwhile endeavour for them.

Also if they were looking at a takeover, they could lose as little as tens of thousands pushing the price down 20% and save an absolute fortune buying out the company.

Again, I'm not an expert but the best thing we can do is try to take advantage of these trends. Us small fish can't make much difference, I for one only own approx 25,000 shares, a laughable amount for the people manipulating the market.

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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.