Enzolytics Inc (ENZC)

[foxi]

Quick charting/analysis for Tuesday,
(Skip the charting if you don't wanna see charts. Curious to hear your take as well!)


I hope the market still thinks the levels around .12 are a bargain price! The engulfing bear candle Monday could be from investors panicking at the possibility ENZC wouldn't post their financials in time to avoid a yield sign. In that case, hopefully the market already factored in the losses and there's a rebound coming Tuesday.

But the financials weren't exciting at all, and raised new questions including the F series shares and lack of expected quarterly revenue. Additionally, with ITV-1 production for clinical trials now delayed until 2022 due to defective lab equipment, do we know of any catalyst that would keep people excited enough to buy at current levels vs waiting for more action and a better price?



Looking at the chart, price finally closed below the projected support line for the first time ever in this price range. That line has reflected the bears half a dozen or more times, so seeing price reach the secondary projection in an engulfing red candle is concerning. The overall structure since 4/16 (the whole chart here) resembles a Head & Shoulders reversal pattern. RSI has plenty of room to diminish further and MACD also crossed into red ticks. The saving grace is low volume, but higher volume could happen as a selloff and not a reversal if investors start to move en masse.

These signals taken together, Tuesday could be brutal if bulls don't rally.

If Tuesday's decisively red, I'm expecting a new downtrend that will eventually take price to around .09 to form a double bottom with the lows in April. Fibonacci short targets include .114 and .066 as other possibilities. Bulls pumping new cash into this Tuesday could go far to stave off the worst outcomes!

GLTA