I can't answer any of those questions (actually I can, but rushed now, up all night watching global markets). Simply saying that ($1.06) is the current Chart Support level, a level at which sellers (of all kinds, longs or otherwise) - at this point, for whatever reason (typically past levels) - refuse to sell for less. Or it can be re-phrased in Supply / Demand terms. Take your pick.
Expectations can and do change, constantly. Such is the nature of markets (i.e. people), based on the available information, where they came in, prior S/R levels (markets have "memory"), a multitude of factors.
My own inclination is that it's best not look for blame outside oneself (i.e. shorts, for example - of which I am not one - not permitted by CommSec / Super, or both).
Re shorts, they don't seek to drive a company into bankruptcy. Rather I know - for a fact having worked on Wall St over 20 years (albeit in IT...) or just read a book about bond traders, especially in Distressed Debt departments - that institutions, say, based on the best fundamental research and analysis from what are often the best minds, see a company going down, under, perhaps even bankrupt, and seek to profit from it. It's not illegal. If you think it should be, lobby your MP - there's an election coming up.
It makes good sense. Most (all) in markets are in it to make money, and price moves both ways (or languishes)....tho often it doesn't appear that way.... (i.e. in it to make money...more later) As for 95% of retailers - including shorts - they are generally clueless...
They don't force companies down, under, or into bankruptcy. They can push stock prices down...and longs can push them up. They are also a second source of buyers (people forget), when covering, as was the case with the dead cat bounce (15 June) the day after the recent TEVA-related Announcement.
I'm just saying what I see as the current Chart Support level, no more no less, no emotion, no blame.
FWIW, Volume is drying up.....every day since the Trading Suspension was lifted. (image below)
Re final question, the risk / reward of shorting at this level - absent further info. - is abysmal, a bad trade.
Buy into weakness (i.e at Support
in an uptrend, which this is
not - hence I would not be a buyer here as I said over the weekend, more than once
, spelling our precisely when I would, so not going to repeat it ), sell into strength (Resistance), which was done. Or just buy , and put in the drawer and forget about..also valid....(however in the case of ASX / 200 index (XJO), the most diverse, and hence safest of options {buy the whole market}, you'd' be at 2006 levels, which nis still about a year ahead of such very long tems MSB holders). Which is still a bit better than where MSB is now (2005 levels, chart presented, and won't repeat it)
I've been told that this - not averaging down when underwater - (and my rec of cutting losses) is "unconventional thinking to those here" i.e. averaging down on a losing position....I was shocked, but as I said above , not all are in markets to make money...they are getting what they want...whatever that might be....
Maybe it's this????
Ed Seykota Quote 1:
“Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money.”
I've no idea. Just saying that Chart Support held.
MSB - Time Series View - re : Volume (see above)
(20min delay)