Looking at the stock, we see it falling day by day, little by little. But if we draw a basic trendline like everyone does, we'll notice it just barely broke through at the very bottom and now it's deciding which way to go next. Taking a broader view at the data sources, we can see that days to cover in mid-March was around 8 days for shorts - not a huge amount, but clearly liquidity is dropping whether we want to acknowledge it or not.
With declining liquidity, will new short sellers want to establish positions if they need to borrow shares from their broker? That's the ultimate question. And another question is whether those currently holding want to dump right here and now at market prices below a dollar.
If the market for this stock turns around from this point, I'm not ready to place bullish bets yet, but judging by the fundamentals, it's too early to wrap this stock up like toilet paper. They've got money in their accounts, although they're burning through it seriously.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.