Antelope Enterprise (NASDAQ:AEHL) Stock Sees Selling Pressure At Higher Level: Now What?

Gains from short squeezes driven by retail traders from different online platforms can often send a stock soaring but eventually a sharp correction is almost inevitable. This brings us to the subject of the Antelope Enterprise (NASDAQ:AEHL) stock, which corrected sharply on Wednesday and declined by as much as 26% after having rallied strongly earlier on this week.

Earlier on in the week there was considerable speculation regarding the Antelope Enterprise due to the existing short interest in the stock. However, it should be noted that there are other factors at play as well and that had also been talked up by many retail traders, who share their opinions online.

The stock primarily soared on Monday due to a raft of discussions among traders with regards to the possibility of a shot squeeze. The trading volume in the stock went through the roof and almost all of that was driven by online speculation.

In case of a short squeeze, retail investors keep buying a stock so that the short sellers have to cover their positions in order to limit their losses and that, in turn, results in further spikes in price. However, the party seems to have come to a halt as far as the Antelope Enterprise stock is concerned.

Market Reaction:

On Wednesday, AEHL stock slumped 26% at $2.97 with more than 2.07 million shares, compared to its average volume of 1.92 million shares. The stock had moved within a range of $2.9400 – 3.8300 after opening the trade at $3.81. Over the past 52-week, the stock has been trading within a range of $1.4900 – 7.7000.