Chart always anticipate what's coming. Up or down.
"They" are those who know things in anticipation, and draw the chart.
If there is convertible debt and "They" know huge news are coming within a few weeks, they force a big drop before the retail investor gets those news.
"They" convert at the BOTTOM and then we Retail Investors get to know the news.
The PPS goes up with the news, and "They" go up with a lot of cheap shares.