When I was watching the price action this week, it had looked a bit suss for a couple of days (because price appeared quite strong, but was making little ground higher), then price was smashed down by a dollar in a day (yesterday), and then today it sweeps lower by another 40 cents straight after the open, before price begins to recover and eventually closes up by about 40 cents.
????
Now I might be wrong, but I feel I have seen this strategy before (a few times).
Firstly, MND is not very liquid, so if a fund manager (or insto) wants in with a meaningful sized position, or if a decent short position needs to be covered (MND used to have well over 10% shorts held), then it can be quite difficult achieve.
And if they just try to buy it on the 'offer', price is quickly pushed up substantially against themselves.....and they obviously want to buy (or cover) for as low a price as possible.
So I suspected price may have been deliberately engineered lower, to shakeout as much stock as possible).
This afternoon I checked the daily shorts (as that is the new 'modern' way to do this), and on Monday and Tuesday this week, the daily shorts were double what they average normally, and on Wednesday (when price was pushed down by a dollar), daily shorts were triple the average.
This is how I reconcile it -
The demand initially adsorbed on Monday and Tuesday (buyers being absorbed by the sellers (using shorts)).
Then while price is vulnerable and demand is low, the price is rammed lower with heavy short selling.
(and I expect, but cannot confirm - because the data is not out yet, these daily shorts are covered each day using the selling that is shaken out)
Then once price is down, any holder who maybe inclined to sell (because of the volatility), will either sell at the lows, or place their stock into the 'offer' at a higher price (hoping price will come back up to them).
Then today, price initially sweeps lower, in an effort to shakeout anymore supply that is willing to sell.....then the (replenished) offer stack is slowly bought up throughout the day.
Below is a one hour chart, with a box around the last four days trading (to make it more clear).
219K was shaken out on the two low bars (arrowed) alone (which is about a days average volume in just 2 hours of trading, and at a much lower price than was previously on offer). It will be interesting to see if price is rammed lower for a second time tomorrow, or if the offer is continued to be bought.
View attachment 833471
cheers
