My near decade-long trading career has been focused on freakish situations like these, so I've seen and treated many cases. Even though I've done well with this kind of chart pattern alone, I always entered my short positions too early and caused myself undue stress and loss. Sure, I made back the losses when the momentum inevitably wore off, but I'd like to save you from making the same mistake.
It would be very easy to tell someone to take a solid short position in China Natural Resources here, but it would be even easier to lose money because intraday squeezes in this stock are not only possible but probable. Even though it's all rather silly, this surge will not collapse within seconds or minutes, as most people believe.
There will be warning signs that the euphoria is wearing off, namely, fading intraday and daily trading volume, a break in sideways price action and sellers blocking each attempt at price spikes. When that happens, the Chinagra will have worn off and short-sellers will have some fun!
Please note that due to factors including low market capitalization and/or insufficient public float, we consider China Natural Resources to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
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