OP, would you consider this morning a Sign of Strength or too early to tell? Certainly seems like there's some decent interest in the stock and these big blocks are setting a nice floor (albeit the last one just got taken out by sellers of some sort).
Could be. I would define the trading range between the low of Feb 8th at 5.98 and the high of Feb 12th at 6.94. There was a short covering rally on the 11th and 12th. It couldn't hold the 6.94 high because it hadn't built any cause and so it drifted back down to a low of 6.01 and built cause. Now in the right hand side of the range it has wide price range up. The question remains, will it have volume that stands out on the chart. After 2.5 hours it has 618k which if it keeps up this pace extrapolates to a daily volume of 1.6M. It came down on the 8th with 2.65M, but in the context of the trading range it is significantly higher volume. So yeah, if this volume velocity keeps up or accelerates I'd have to say it is a sign of strength, SOS.
If they can hold it above 6.55, the low of Jan 2nd, that would go a long ways to discourage the shorts into covering. And of course, if it can break above the TR at 6.94, then we'd have to say the trend has changed. It sure looks like the smart money is taking it to the dumb-money shorts here. There is certainly no reason to sell here from a technical standpoint.