Enzolytics Inc (ENZC)

[foxi]

Charts and TA pack!

It's late after work so I'll keep them brief. In a nutshell, tomorrow looks to be a pretty important day as most of my indicators are showing the end of momentum in every direction. I expect a new trend to emerge. We don't know the strength or duration or direction of it, only that the market resists stagnation.


Some thoughts about bears before I get to the charts! In some of my earlier posts, I mentioned that bears could be close to exhausted from months of steady selling, and indeed the current wave of bears could be. News anytime soon should make this fly, because the ones who wanted to sell shares already mostly have.

BUT now it's possible we have a whole new wave of bears forming in the background! Who are these bears? Longs with a LOT of shares who've held since ENZC started building momentum last year from the trips, who've now hit the 1 year anniversary and can sell their shares at long term capital gains tax rates instead of the income tax rate. If these investors start to get the idea that ENZC's share price will continue trending down (ie no news and more red days), they are briefly in a sweet spot of favorable tax rates and maximum perceived return. If a critical mass starts to feel this way, we could see a mini-rush to sell a LOT of shares, that pulls price down hard and fast. (Into the single pennies.)

These longs have also held through an extreme bearish downturn thru most of 2021 so they have higher tolerance to prolonged lack of news than shorter term traders -- and this patience shouldn't be underestimated. They tend to be more optimistic since they got in early and are still seeing green in their portfolios. Just be aware that the carrot of a lower tax rate and a savvy sell is being dangled now, when it wasn't before. Some investors are probably gonna bite pretty soon if there's no news and MMs keep dragging this lower.

There's a lot of optimism around this stock so it could break upward without news just because of the exhausted bears. (If it goes up from here, longs on the fence probably hold, so no reinforcements for bears.)

GLTA!

Hourly


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