Enzolytics Inc (ENZC)

[foxi]

Price is currently testing a critical support level. Not pretty to watch, but support is holding so far.

WARNING: This post contains charts. Skip it if you don't believe the OTC can be charted.
(You'd think I wouldn't need the disclaimer, haha.)

On the daily chart, there's a support level projected from the low in April. It has acted as support at every opportunity since then. Today's action drove price about as low as possible without closing under that top line.

If support holds tomorrow, I would expect price to fall as low as .117 to touch the secondary line before rebounding -- but whatever happens I'd like to see the daily candle close above that upper support line to avoid signaling a major & bearish pattern change.

Other TA I do shows mixed bearish/bullish signals, so from a TA perspective it's kind of a toss up what this is gonna do. I'm not at all comfortable with the shape of the structure that's formed in the candles since April. It's similar to a Head & Shoulders reversal pattern which could suggest an imminent sharp continuation of this year's downtrend. The market rejected .30 and .20 in series, and it's currently deciding whether to reject levels around .10

IMO the most likely explanation for today's price action is the one from MAGA_PATRIOT: we are 4 days away from a Short Interest Settlement Date, so MM's are likely shaking the tree to get the best price for covering their shorts. Why is this likely? Because we've seen it many times already. In this scenario, support should indeed hold, and we would see some green again on Friday or next week.

GLTA