Feb. 26 at 2:06 AM
$AUTL What to look for on Thursday....opinion
The shorts used almost half the daily volume on Wednesday (approx. 700k shares) just to force a
$0.06 drop, it reveals a massive weakness: they are out of "cheap" ammunition. When short sellers have to exert that much energy for such a tiny result, it usually leads to one of two scenarios.
Short sellers cannot sell the same shares twice. Since they already "spent" their firepower on Wednesday to push the price to
$1.76, they need the price to stay down so they can cover profitably.
If buyers (Longs) see that the shorts failed to break the
$1.70 support despite massive effort, they will likely "buy the dip.
Without another 700k shares of selling pressure to hold it down, the stock could easily "snap back" and reclaim the
$1.82 -
$1.85 range quickly. Most of the shorts who entered on Wednesday are currently "underwater" or barely breaking even.
