Looking for quick swing to the low 200s after an epic and predictable dump.
Comment:
buying range between 50-100$. Its an abnormally large range, but this is an abnormally volatile stock and anything could happen as weak hands ditch combined with epic shorting pressure push this lower before the inevitable rebound
Comment:
There are two different forces at play during a short squeeze. The first and most violent one is the real short squeeze (when shorters are forced to close positions by buying back their shares: they push the price higher). With a lack of liquidity or selling pressure, the price makes a very strong initial push which we saw when it reached 450$ or so.
The second force comes from the second wave of shorters. Once many shorters have been squeezed, others, such as myself, and shorters with deep pockets see a weakness in price action and double down. That combined with profit-taking forces a huge correction (which we saw now pushing the price to 90$). Now the new shorts reaching over 70% in profit take their share, resulting in support and an increase in buying. Many traders will buy the oversold conditions, combined with the fact that retail traders are still frenzying over this stock will most likely push it back around 150-200$.
The second force comes from the second wave of shorters. Once many shorters have been squeezed, others, such as myself, and shorters with deep pockets see a weakness in price action and double down. That combined with profit-taking forces a huge correction (which we saw now pushing the price to 90$). Now the new shorts reaching over 70% in profit take their share, resulting in support and an increase in buying. Many traders will buy the oversold conditions, combined with the fact that retail traders are still frenzying over this stock will most likely push it back around 150-200$.
Trade active:
Opened position at 60$. looking at 120$ target
Comment:
support at 50$ holding for now
