I should clarify my posts from a couple of days ago for the benefit of the chartists on this board. I was referring to the chart patterns being predictive of any significant movement in share price.
I would agree that chart patterns can provide a little guidance on support and resistance levels, but to try to say that the charts predicted this latest breakout (or any past breakout) is really a stretch.
To illustrate the point, you can simply go back 3 days and try to find where the chart indicates the dramatic breakout of the last two days - it doesn't. Not stocastics, or MACD, or RSI, or 200 day MA, or candlesticks or bollinger bands or any of the rest of it. The point is that these breakouts are fueled by announcements - not a 'bullish pattern'. 25 years of charting has taught me that there is simply not enough MZEI volume on a daily basis to give a pattern that has any degree of accuracy. If there are 20,000 shares traded one day and the next day 80,000 share are traded - it may be that 1 guy decided to buy 80,000 shares - not that volume increased by 400% and that a major trend is emerging. If volume went from 2 million shares to 8 million shares - that would be a different story.
Any significant announcement will blow any chart pattern of a thinly traded stock like MZEI to smithereens - which proves my point.
You can also see patterns of bulls in the stars and clouds if you really want to - that doesn't means they actually exist there. Of course, we're all free to believe what we want to. If it keeps you out of trouble, great - chart away. GLTA
