WORX - Position taken/ Watching for a short squeeze LONG
WORX is shown here on a weekly chart. Basically it has been falling since COVID. Apparently,
a Chinese company manufacturing electric landscaping and yard maintenance tools. In the past
four days a big move up from 1.40ish to over 3. Looking to the left, it traded at 125 around the
time of COVID. The FINRA short indicator had a burst of activity and the relative volume is
20-40X. In the context of things, shorts could have been taking positions dating back as far as
four years and may now be buying to liquidate their positions and realize profits. Any rising
price action will stimulate more of the same synergized with new buyers stepping in to get
a piece of the action. I am now one of them. My targets of 6.8, 8.7 and 11.8 are drawn on
the chart from pivots in the past year. The 4H RSI on the dual time frame indicator shows
a rise over 50 while the weekly RSI line is chronically low and not yet changing. If the short
squeeze takes off, the targets will be met quickly. Hype in trading rooms and social media like
Reddit will add fuel to the price action in rising volume. Volumes over 100 million typically
cause more interest which helps sustain the volumes. Shorts buying to cover adds more to even
more volume.
a Chinese company manufacturing electric landscaping and yard maintenance tools. In the past
four days a big move up from 1.40ish to over 3. Looking to the left, it traded at 125 around the
time of COVID. The FINRA short indicator had a burst of activity and the relative volume is
20-40X. In the context of things, shorts could have been taking positions dating back as far as
four years and may now be buying to liquidate their positions and realize profits. Any rising
price action will stimulate more of the same synergized with new buyers stepping in to get
a piece of the action. I am now one of them. My targets of 6.8, 8.7 and 11.8 are drawn on
the chart from pivots in the past year. The 4H RSI on the dual time frame indicator shows
a rise over 50 while the weekly RSI line is chronically low and not yet changing. If the short
squeeze takes off, the targets will be met quickly. Hype in trading rooms and social media like
Reddit will add fuel to the price action in rising volume. Volumes over 100 million typically
cause more interest which helps sustain the volumes. Shorts buying to cover adds more to even
more volume.
Trade active:
WORX price action is down. Holding for now looking for a bullish reversal.