Shorters5 Nov 2019 22:39
Just like many people who buy shares have sell stops, shorters have buy stops. They also have margin calls if the price goes too high.
What you may see in the coming days, as the price roars up is a lot of forced buying and some very aggressive spurts up in the price.
For example, if you are short 1m shares at 2.5p (£25,000) and your broker requires you to have a minimum capital for a 25% move to go against you (losing upto £6,250) then they will force buy-back your stock if the price goes to/above around 3.125 pence.
Many of these shorters will be egotistical and think they're picking the top of the market and it won't go much higher. (How silly!)
That is another reason why I think we will see some very sharp up moves in EUA in the following sessions.
As we break above 3p, 3.5p, 4p etc. Expect to see some very sharp up moves where these people are all trying to buy at the same time, or even a computer is force buying stock at the same time.
I believe this happened last Tuesday and Wednesday as we went up very fast. It'll happen again soon enough...