Let's see what the SP does over the next few days prior to making that statement. Yes from experience majority of SP will retest the new low over the next 1-2 weeks or so. However today's reversal is a very strong sign of buyers coming back and short covering. If you have been watching the full depth you'll realize that a substantial of buy order btw $3.15 to $3.30 were from buyer stepping up with 0.5c which only insto and broker can do. Tells me that short covering is already in progress. Every sell order to the next buy price is absorb by the 'invisible buy'
I actually tested the market as I use IG to short or buy 100 shares just to see he reaction, hence I am convinced that buy bots are in place.
Shorts are feeling uncomfortable now as their profit is starting to dwindle esp after today's big drop only to reverse.
The only caveat I have is that the finish was not as strong as I expected as generally reversal tends to end with green, rather than a tail at the top candle. Seems like the old support line of ~$3.30 is now the new resistance level.
Would be good if someone could post the total shorts as of today.
cheers
pcyc
SGH Price at posting:
$3.17 Sentiment: Buy Disclosure: Not Held
