When trying to determine resistance and support, its rare you can put an exact number on it. I said $5.00-$5.25 was previous resistance because their was significant buying and selling activity in that range at the previous busted lows that I referred to. Many times, those who purchased at the previous busted lows, are still holding the stock and when the price returns to that llevel, they are happy to get out and break even. It is also possible that many of those purchasers threw in the towel and had dumped the stock, making the resistance not so strong. I believe that is what is occurring as we are not seeing much resistance as the stock price moves back up. This is because of the huge short position which is adding fuel to the fire.
I'm looking for a test of the $6.00 resistance soon and then hopefully a breakthrough to $8.50 in the next couple of months.
