Nice Volume Today, page-84

Yes, I didn't want to say anything because I would only be speculating but it did appear to me that there is a plan to have buys and sells transacted at 7.8c. To what objective I do not know but 7.7c seems to get stacked and if the share price runs to 7.9c a heap of sells appear between 7.9-8.3c to cap the run. Interesting that your figures indicate that 4M shares have been short sold at 7.7c because from what I have observed over the last 2-3 days is that most transactions occurred at 7.8c. Technically the FAR share price is in a very tight trading range with buyers even though the buy side is stacked up to 7.7c unwilling to chase prices higher and sellers unwilling to sell into the buy depth at 7.7c. What we have is market where average volatility has dropped to extremely low levels indicating that buyers and sellers are in agreement on price. The function of the market is that you cannot have agreement between buyers and sellers for any length of time because that is not how markets work especially when that share price trades with a higher volatility. What is occurring is the FAR price is coiling for an explosive move. The direction is anyone's guess but the potential targets from the triangle pattern are 6.4c or 9.2c.

Now I trade the currency markets every night and take all trade set up whether long or short. The one time I am out of the market apart from news events is when the volatility drops off and the price is range bound because you get cut to ribbons. Experience tells me that the trend is your friend and if shorting you short when a support level is breached or the indicators are showing extremely overbought levels at a resistance level. FAR's support level is 7.4c and resistance level is 8.1/8.2. You normally go long at a support level and cover your shorts. Now if someone is building shorts above a support level with the daily volatility near its lows and the price is trading in a sideways pattern then this is no normal trader with the normal risk management discipline. Obviously share trading may be different to currency trading because it is a lot easier to manipulate shares than the currency market. But for me to feel confident about shorting a share like far I would like to see the volatility increase, price break below 7.4c on increased volume before I went short. To short above a support level in a sideways trending stock you must be confident that some market defining news event will play out in your favour. I just looked at the oil price and it's showing $45.44 on Market Watch so maybe this shorter is looking for a downside break with the oil price. I'm sure oil was around $48 last night so something caused a big drop.