Short InterestShort interest increased 154,454 from 80,144 as of 16 March to 232,598 as of 1 April. Here is the report:
https://www.dailyfinance.com/company/baja-mining-corp/baj/tor/short-interest
In the first half of that report from 16-22 March the share price rose and only Tuesday, 22 March, was a down day.
In the second half 23 - 31 March there were three down days and Dacha hit an intraday low of
.98 by Wednesday, 30 March. Shorters were likely selling short between 22 - 30 March. Here is the price chart:
https://stockcharts.com/freecharts/gallery.html?baj.to
Shorters were likely betting against Baja based on the slow retracement of the large and sharp run up in share price at the end of last September. However, as I indicated in a few previous posts this retracement likely was coming to an end as the long term upward trend was not broken and the share price was approaching the 40 week average and was tending to bounce off of this long term support line.
Come to an end it has. On 31 March things turned drastically against shorters with the share price rising over the last 5 sessions to close at $1.21 today. Those 154,454 shorted shares borrowed since 16 March are out of the money and if they are on the same tab as the 80,144 that were outstanding on 16 March then the total shares owning, 232,598, have lost a considerable amount of their paper profit if not totally out of the money in the aggregate.
What has happened since the turnaround on 31 March. Given the serious accumulation, there has been significant volume, it is likely shorters have been covering their positions adding the the volume of buy orders in the last 5 sessions.
With this run up in the last 5 session will the shorters try to short sell again? I think not. Over the retracement of the last 6 and half months a lot of the weak hands left. Those still holding at a loss realize that Baja is now 6 months closer to production. Those who are in the money with this run up have a profit buffer and have been accumulating based on undervaluation and low risk to Baja - these are long term holders. There will be few shares coming on the market for sale.
My guess is this reversal will hold and we are now into a resumption of the long term upward trend that will have its pullbacks along the way but will see higher highs and higher lows from here on in.