Rennova Health Inc (RNVA)

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Forbes: "Technical Analysis Is Fundamentally Flawed"

"On June 13 [2014], a research firm billing itself as “the worldwide leader in actionable technical analysis” reported a “symmetrical continuation triangle (bullish)” in the trading pattern of Let’s Gowex (XMCE: GOW). Within approximately 37 days, declared the technicians, the Spanish telecommunications company’s shares could rise from €20.77 to a range of €26.25-27.50. The stock’s support level, according to their calculations, was €18.90

Just over two weeks later, a newly published fundamental research report proclaimed that as much as 90% of Gowex’s reported wireless revenue was fake. Gotham City Research concluded that the company had no value as a going concern and set its price target at €0.00. On July 1 the stock plunged to €10.71, even as Gowex howled that Gotham City’s report was “categorically false.”
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"By digging deeply into the numbers and maintaining a skeptical attitude, however, fundamentalists at least have a chance of avoiding high-fliers that fabricate value through accounting gimmicks or outright fraud. In contrast, technical analysts who chart stocks propelled by such chicanery will not prevent investors from losing their shirts in the next Gowex-like debacle.

https://www.forbes.com/sites/investor/2014/07/14/technical-analysis-is-fundamentally-flawed/#112402644fb2