Yesterday, Silver Horn Mining Ltd (OTC:SILV) surged 40% to $0.28. The appreciation of SILV stock happened on a much higher than the daily average volume. 516 thousand shares changed hands during the last trading session.
However, the most striking fact is the shorting volume that was generated yesterday. The official FINRA data showed that 503 thousand shares were part of the short volume for the same day. This means that 98% of the volume was comprised of short transactions. This amount of shares was traded all in one transaction near the end of the session.
The reason why shorters have found a gain opportunity in the stock was apparently the news that was announced in the press release issued yesterday. It said that SILV had acquired a silver mine near Phoenix, Arizona. [BANNER]
In this regard, two scenarios explaining the short volume are possible. Either a bulk short position was closed due to fear of a stock surge caused by the news, or the same huge position was opened because the market participant expect that a correction will follow after the spike.
Depending on what follows next, the stock chart might deliver a couple of bullish crosses. The lines of the short-term moving averages have already converged, while the MACD lines are closing to each other. However, due to the huge shorting volume it is not possible to predict what will happen with the stock in the coming days.
