Enzolytics Inc (ENZC)

[foxi]

Nice week for ENZC!

I'm still jet lagged from a recent work thing, but I'll try my best to show a couple charts real quick!

For the last couple years ENZC has been trading in a cycle that repeats approximately every four months. Prices slowly drift down until RSI shows oversold, then the market rebounds up with slightly higher volume, with the highest volume coming in just before the end of the run.

On the chart below you can see (part of) the rhythm. We were a little overdue for this latest cycle for whatever reason. Notice the RSI reaches oversold and MACD crosses over into green a few days before the next pop.


Daily chart. Dark blue is 200 day moving average.




Study where RSI typically peaks, how the end of each run has behaved relative to the 200 period moving average, where the highest volume hits, and how many bright green ticks we've seen on MACD for each run before MACD cools and goes red again.

Volume is still very low compared to the earlier runs. There's lots of room between today's close and the 200 day moving average. RSI is as high as a couple of the other runs, but sometimes it's risen higher into overbought territory too. MACD already has nearly as many green ticks as it has in previous runs, but no tall ones yet.

Incidentally, today's candle resembles a Shooting Star (tall upper wick. See explanation here) which is usually seen as bearish; but today's candle is also green, so it's a mixed signal.




This week's run coincided with a FINRA short interest settlement date and those dates have been meaningful in the cliff drops MAGA_PATRIOT has helped us track during these two years.

There was also an Inverse Head & Shoulders pattern in play. Today's trading hit the profit target for that pattern. That doesn't imply the run is over, just that an ideal profit target for trading that pattern was in fact achieved. (And sure enough, lots of people took profit there.)

4h chart. Dark blue is 200 period moving average.






Will be exciting to see what happens Monday and through next week.

From what I'm seeing here, a dime by end of month is possible, but maybe overoptimistic. Depends if the overall market trends hotter and how aggressive MMs are about driving this down again. A brief pop to around seven and a quarter and then a new downtrend is my guess.

ENZC could drop news as well and add fuel to the fire, but keep in mind all the news they've dropped so far hasn't dramatically altered this cycle. If they can impress us with something huge, this cycle can certainly be broken.

Would love to hear your thoughts. Have a happy weekend!




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