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I've been using technical analysis for many years so thought I would share some thoughts here on a couple of things. In the short interest post I posted the link that was recently out for MNKD being in the top 30 shorted companies....I also pointed out in that it was the number one best returning stock of those 30 (around 82%). So understanding how price points work is important as it determines where certain support and resistance levels are and why they are there.

Long term holders that have been in from the beginning have rode the stock anywhere from 20 down to under 2....some are exhausted but know they have been through the war and survived...they will not sell on these dips and haven't all along the way. They have seen the shorts side bash and create FUD all along the way...in turn they are use to days like yesterday. Then with the volume that took place the day before ADCOM and subsequently after the vote...there were some longs that panicked and exited the day before only to re establish positions after. This creates a price point of which we are visiting today the 8's again. The high post ADCOM was 8.08 and it wasn't visited until the period of shareholder's meeting. Once that area of resistance was taken out (which was a significant breach as it was also the highs from Aug '13 post the phase III results price point area) we proceeded to march up to the 11's....to me this is a natural pull back to the most recent resistant breakout area. A nice test of this and we should be back on our way to the highs post approval. Yes it was disappointing that the 50d MA did not hold the last day or two, but with the conditions ripe for the short side they knew it would blow stops out there and just below...thus the coordinated effort of the short side.

We looked at the long perspective, now lets look at the short perspective....as mentioned just above they most likely have felt that it was a perfect storm opportunity with where volume and trading was to initiate this "bear raid"...keep in mind they have been fighting this the whole way up and now standing at 71 mill needed to put forth as much of an effort they could muster to try and mitigate damage...the problem for them is as the price comes down they are competing with existing committed longs adding and new players that have been waiting on the sidelines for better entry points...this is why they continue to fight an uphill battle. I put the 8.08-8.20 area as a significant support area where the pps should then resume its upward trajectory. Many people believe that you cannot use TA with a biotech that is going through its binary events stages...this may be true for smaller market cap entities but one with the size of MNKD's market cap it is definitely applicable IMO.

On a side note, the S&P is putting in what looks to be known as a tri star top depending on the close today...these are rare trend reversal formations after a prolonged trend...if i'm correct it would play out with a possible decent correction into next week so this will help the shorts as well with some margin call pressure on the longs that have portfolio's on margin. This would most likely enable the price pressure down to the low 8's next week IMO without any news come Monday or Tuesday. As an FYI, I am buying SPY puts going into the close if it looks like that formation holds...here is a link to the formation mentioned: www.investopedia.com/terms/t/tri-star.asp the current chart looks potentially textbook to me at this point ;-)