Just my opinion that the pattern of trade suggests that the HL may be some way up.
Take today for instance. Gap it up and still find support at that level.
Now if they wanted to deal with the resistance and waste funds on the weak holders they would have pushed through that level in a different manner.
And IMO they have filled their pockets at lower prices already perhaps and now want to make some cash long.
Today supply was tested Funkster and support was found.
They took it to 70 then drove it back down to 67 before support sent it back to 68.5c.
Now if they wanted to test supply why did they not drive it down further, close the gap and see what they found?
Ans: They want it higher otherwise why gap up at all?
The comment on shorts SS old bean was just an observation that perhaps the play is the other way round.
If the smart money want it higher and they know that there are "x" amount of shorts outstanding then one strategy may very well be to gap it up and hit their stop loss.
That would be a short sell shakeout yeah?
Perfect strategy to force them to buy to settle their position and support a move up in SP, again saves them energy and cash.
My opinion anyways is that the SM operate to support the path of least resistance and once momentum build in a direction they will align themselves with it rather than oppose it.
Just what methinks for what its worth.
Nighty night.
LYC Price at posting:
68.5¢ Sentiment: LT Buy Disclosure: Held
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