I suspect that it is a computer generated technical analysis type thing that gives them the "false security" behind them shorting this stock. Perhaps also driven further by "what worked in the past should work again" type attitude. Another aspect to consider is that some people feel that gold is in a "bubble". (I do not feel that way at all.) So, perhaps a combination of reasons. Either way I agree with your point that it is crazy to be selling this stock at this point, and downright lunacy and complete madness to actually be shorting this stock with drill results just around the corner. To each their own.

My2Cents