Cytodyn Inc (CYDY)

[stockorus]

On the day of the FDA letter, the stock price came down hard. But since then it has not really drifted lower and lower. Pretty much it looks to be holding this level and slowly climbing back up. Usually if there is really bad news, the price will continue to go down after the first hit day.

Can we read anything from this behavior? Is the market saying that CYDY is undervalued and people are buying in at this opportunity (and shorts covering)? Why are people not buying into the shorts' predictions of bankruptcy, price going to 1.5 or below, etc., and selling further even after the FDA letter and its negative impact on our prospects? Or is the present support above 2 a normal chart behavior and no way to tell that it is likely to hold from hereon?