Wow some action this week! Every chart tells a story, and if you...

Wow some action this week! Every chart tells a story, and if you want evidence of smart money trying to cap price and shake the tree in order to cover shorts in an orderly fashion and/or accumulate at a discount, then take a look at the 15 minute chart from this week- this is what it will look like. There was 3.7M shares traded in just the first 15 minutes on Monday, more than any single day over the last 3 weeks bar 2. Price opened above the 90 resistance and quickly rose to 92.5 and then – kersplosh!!- a great big bucket of icy cold water was thrown on it to cool it down to 90 cents again.

Over the next couple of days, every time the price heated up and threatened 90, a bucket of cold water was thrown on it in the form of volume selling. But buying kept coming in volume and forcing the price up and by Wednesday it appears the buckets were running low. But then out they came again when price threatened $1 on Friday.

On Monday alone, total shorts dropped by a massive 6.3M (ASX 4 day delayed accurate data), even though daily shorts more than doubled on Monday and through the week. I know the daily numbers are not perfectly accurate, but still is a massive relative jump compared to previous few weeks. So this means that potentially over 8M of Mondays buying volume – half the days buying volume – was shorts covering, and it looks to me like most of the selling in that first 15 minutes was professionals using a few million shorts (ironically) to jump on the price before it had a chance to overheat, force it down and draw out profit takers and weak hands. And it worked too, until volume buying eventually cracked the 90 and shot up on Thursday to $1 on Friday, where it appears is now being defended by fresh buckets.

Maybe all that selling was just triggered by profit takers? There’s been several opportunities at the 90c or close to this level over the last couple of weeks, so why pull the sell trigger in the first 15 minutes when the price had only jumped a few cents? Sure some profit taking or tight trailing stops being triggered on Friday after it snuck over $1, but in the first 15 minutes on Monday after an announcement when the price had only just started rising? Profit takers are unlikely to have kicked off the selling. Same with stale holders- you mean they were all waiting as a group for a positive announcement so they could sell in bulk in the first 15 minutes? Hmmmm…

There’s still over 100M shorts to be covered, so tomorrows trading will be interesting. Price closed close to $1 on Friday, so will we see another early selling push- bigger buckets? If there is, then at this level there’s sure to be fixed stops that get taken out and some profit taking that would add to the downwards push, but even if there was there should be strong support now kicking in at the 92.5 down to 90 level. On the other hand, there is clearly new buying momentum as more shorts are covering and the recent price action has attracted new buyers and traders and we’ve just hit a 52 week high which means MYX will be appearing on more scans and watch lists - bigger buckets may only cool the price by a little and temporarily anyway.

All makes for an explosive mix that could quickly leave $1 behind and in the distance…good luck everybody!​