T/A Update, page-3

Tony,

Today's action is looking ugly and on a weekly closing basis we will have a massive shooting star candle and double, triple quadruple top, take your pick. Next week's action becomes critical. From a TA perspective we do not want to see a daily close below 7.2c or a weekly close below 7.5c if the uptrend or the technical patterns are to remain as possibilities. A retracement back to these levels and rally back to 8.6c would create a handle and a new potential cup & handle pattern.

The shorts only added 38K on Monday whereas shortman quotes 1.779M gross shorts so this would indicate that the shorts were responsible for 30% of Monday's volume with miniscule net shorts added. We will see Tuesday's net shorts on Monday next week but what we want to see is what happened on Thursday and Friday this week. Shortman shows the highest gross shorts for the last week were Friday 17th and Monday the 20th for 3M gross shorts. We already know that the net shorts added on both those days combined was around 80K so the shorts were doing a lot of shorting and covering for very little benefit.