While a few brave bulls may be entering the market the majority may turn out to be short sellers. Thus, a very large short position can support the price of the stock to a certain extent but once the covering is done then natural selling drives the stock down further. However, if bad news comes out, then the stock could very well get hammered. Bears will stand aside, watching the stock freefall before they start buying to lock in their gains. Things get very interesting at this point and quite possibly very profitable.
Bears start feeling financial pain.
If prices rise, short sellers start losing money. In order for them to cut their losses, they will have to buy back the shares they sold short, at a higher price. The key is that in order for them to cut their losses they have to buy back the stock to replace that which they borrowed. If there is a huge short position, it means that there are going to be a lot of new buyers coming back into the market and buying. This drives the stock even higher, and in some cases can be like throwing gasoline on an open fire.