Short sellers think they’ve got this one in the bag …
And that’s the most dangerous thought process for a short seller.
The stubborn idea that a low-float crappy stock will fall lower for easy profits.
It baits new short positions every time a stock spikes toward the highs, until BOOM! We’ve got a short-squeeze Supernova that’s spiking to unimaginable highs.
We saw it last week from SMX (Security Matters) Public Limited Company (NASDAQ: SMX) …
A 1,000% gain. From $5 per share to $76 in less than 24 hours.
And today’s newest short squeeze, Polyrizon Ltd. (NASDAQ: PLRZ) has a comparable float size:
- SMX: 763k shares in the float.
- PLRZ: 962k shares.
On the intraday chart below, we can see there’s clear resistance around $8. The stock already touched that level three times today.
Every candle represents one trading minute:
From a short seller’s perspective, it rejected the $8 level three times.
But from my perspective, it’s already touched $8 thrice, and a fourth time could cause a vesuvius sized eruption.
Plus, we can see on the chart, during premarket hours, the company announced a manufacturing upscale milestone for its nasal-spray product platform.
That bullish catalyst caused the initial spike. And now short sellers are working against a low-float biotech with credible news.
Keep an eye on that $8 level. And make sure to position your account correctly to protect against downside risks.
This price action is not random!
My millionaire students and I are watching this setup LIVE right now. And we’re aiming for smart entries above key support levels.
Follow my lead: Get a custom trade plan for PLRZ.
Cheers,
Tim Sykes
*Past performance does not indicate future results
