On days like this, I like to take a step back and look at the...

On days like this, I like to take a step back and look at the daily chart.



It will be interesting to see if price respects the center of the Bollinger Bands (BB) and the 25 period EMA and we find support in the upper channel of the BB. If we do,that is bullish to me, especially regarding the volume of the selloff. This is also the pullback that everyone was expecting so it is healthy and was bound to happen eventually. For full disclosure I have my main position, but in addition to that I have a small parcel that is in the red, and didn't sell. I will be holding it long-term and have no concerns.

Also regarding accumulation, lets look at the OBV and Accum/Dist in the daily chart, the recent selloff is a drop in the ocean, and I imagine we will see both of these flatten out while price consolidates - just my opinion. My view of this is we have volume leaving the stock both from traders and long term holders taking profit but this is being transferred to new holders which gives us a solid base for what is ahead for the company. We did not have a solid base during this rally, a lot of the volume would have been traders entering/re-entering, so it can be misleading. What the volume does during and after the selloff will be very telling. What will be interesting is if these volume indicators support the next move up, because if they do, then I would view the long term rally as still intact. If price continues to drift lower but the OBV and the acccum/dist flatten out and tip upwards, we will have volume-price divergence which is typical of accumulation. The coming weeks will be very interesting.

On the 15m chart, I have re-done my fib levels to take into account the entire rally (which I should have done yesterday) and it looks like the 61.8% fib level is being respected. This is arguably the most reliable level for retracements, especially after such a prolonged rally. We are also testing above the 9 period EMA which is nice



Regarding shorts, I would imagine that there is a great deal of uncertainty in short positions at the moment, and whenever they do start to cover, it will be buoyant for the share price as the pressure to cover becomes ever greater as the share price recovers. If there is a million shares short, thats a million buy orders that will have to eventually come back into the market once the play is done. Also with institutional behaviour, if an institution is aware of another institution being in a short position, they may buy and try and squeeze them, they do this all the time. So the drivers behind the share price are very complex, and who really knows just how big a part shorters are playing. Short play may have worked when sentiment was to sell (with the momentum of traders and long term profit-taking was to the downside) but that can quickly change.

I would be very nervous if I was in a short position now as there are no justifications for it other than the size of the recent rally, so it isn't a structural short play (which are higher probability and everywhere to be found), purely an overbought short play IMO which may have run its course?
As others have said it will be interesting to see the short reports next week.

Have a great weekend all and try and get some time in the sun and away from the charts. I feel we are onto a good thing here with WBT, and heck, just look at the technicals, dont lose perspective just because of the last two days. I think its time for some consolidation, and a chance for new potential buyers to get involved with a company that I feel has a fantastic year ahead. Again, all of this is just my opinion and not financial advice.