Zion Oil & Gas Inc (ZNOG)

[WiseYoda]

Both bear traps, and bull traps happen frequently in the marketplace. I believe the August 22nd press release was indeed impeccable timing by Zion. This is obviously speculation, but on the day it came out some took to Twitter, and one even posted here doubling down on their confident positions, but as the day went on I believe the opposite began occurring, ;). I would agree with Mr. BlissBull that a bear trap occurred, and possibly a short squeeze as well because I don't believe Zion is some great stock to be shorting right now. Obviously, when a short squeeze occurs shorts are squeezed out of their positions, which usually happens at loss, but when a bear trap occurs it is a little different. This kind of trap occurs when traders takes position against a stock believing that it is reversing when it is actually not. Regardless of what anyone says about Zion, or any company for that matter, each person is responsible in doing their own due diligence when taking position in any company.

IMO, more of the bear trap occurring makes sense because two weeks prior to the last press release Mr. Brown requested prayer via Facebook regarding some kind of problems that were ensuing at the drill site, which was followed by a press release the next day stating that drilling had indeed continued. This could have easily created the atmosphere, and confidence in traders believing that Zion was indeed reversing UNTIL the last press release came out.

Also, if a short squeeze occurred as well it would have forced short sellers to cover their positions to minimize their losses, which would explain the decrease in the PPS following such a great day after news came out because usually when short sellers purchase shares needed to cover their losing positions the upward momentum, (MOMO) decreases causing the PPS to actually start going down, BUT if a stock remains bullish after shorts cover then the MOMO can return, which may be happening here now, but only time will tell as the stock continues trading. One who bets on the decline of a stock must rely on technical patterns to see if the bullish trend has reached its peak, or not, which I don't believe Zion has.

Anyhow, this is just my opinion, and hope it helps. Happy trading day!

PS: Here is article that came out today regarding Crude:

Crude higher approaching rig count this afternoon; commodities slightly lower https://www.briefing.com/investor/popuppages/articlepopup.aspx?articleId=SI20170825103441