It still has to get under $6.55. If It gets under It on lighter volume before the ER then that would tell me the boyz are accumulating; it's only a spring. I think there are buyers lined up there though. As for selling, who's left to sell? 7 million the week of the last downdraft. I think It may have been a selling climax. A low volume test of 6.55 then the short remnant will initiate an automatic rally. Then It really doesn't matter what the ER results are; Its a matter of how the boyz are positioned. The shorts posting here know they are running out of time. They are not going to risk holding short thru the ER. For that matter niether should the longs. imo.
It's the low of the Jan 2nd selling bar (perhaps selling climax). It had the largest daily volume, excepting the 1st day of public trading. If it can test it and close above it on lower volume that would say the selling is done for now and the price will have to rise in order to find supply (a supply of stock offered for sale).
It's simply supply and demand. Once the public shorts (shorter-term traders) see that the selling is not coming in at 6.55 they will start covering. Assuming then that every long who wanted out got out on Jan 2nd, the short-covering demand will seek a supply of stock for sale which may only be found at higher levels than 6.55.
Of course if another round of high volume selling comes in at that price, all bets are off the table. The sooner it tests the better for bulls. If the test is delayed, cause will be built up. In other words, the operators will have had time to reload on the short side and the public on the long side and the operators will take it down forcing the public out once again. So, if you are bullish don't buy until there is a successful test and/or a sign of strength.
OP - stock below 6.55 on downgrade, how convenient. I assume this thing is going to drop on high volume, therefore not really a "test" of 6.55. So is it look out below, or what do you expect to happen from here?