Shortsellers are likely using the higher prices to get better fills and averaging up.
Shorts likely their target is the 17c level as they are still in the safe zone of 22c to 28c. Some shorters may even hit the ask to try to get more volume at the bid levels so they can lure more stock at higher prices to sell into.
Price still closer to lower 20s than higher 20s show weakening strength of buyers and/or impatient buyers exiting for opportunities elsewhere.
Buyers are still very weak as bears/shorters are keeping a lid on price at/below 25/25.5c level. Still nothing to see here as price is still below 28c. No shortseller wants to miss out on what may be an easy 50% gain to 17c from 25.5c
Bears are gaining advantag and volume is weak. Those 25c options look like they may expire worthless or at the money at best. It will only take another capital raise to crush the price and give the shortsellers their bank on a silver platter.
Since 2016 SOI 120m to 537m (Jun2024) and not including the 47.4m (Sept2024) and the odd 30m 9.2m 12m, 13m 8m 4m 3.5m of shares/rights/options tot. 127.1m for a tot SOI of 664.1m. So thats an increase of 5.5x shares but the SP has done the inverse, from $1 to 20c. The hurdle for the options is a measly zero to 10c from currentl levels - at 35c with a 3 year timeframe. This is not a serious or ambitious target by any stretch and more likely an insult to shareholders. What are management doing? Diluting Shareholders by Handing out shares like candy?
Their recent 2024 Annual report states that they burned thru 3.9m for FY24 and inflows of 2.8m but that was mostly from option excise.
This is clearly unstustainable. Current situation is like:
Mr Market: "Are you hungry?"
EIQ Management: "Naah, I just at my left foot so I'm good for now."
EIQ with now approaching 700m SOI fully diluted which makes it harder to for price to move higher and short sellers are using this to their every advantage at the moment.This situation is unfortunate for bulls, but price action is indicating that bears are winning.
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