Enzolytics Inc (ENZC)

[foxi]

MAGA, finally circling back to your question. I'm hoping this will actually trade sideways this week and maybe close somewhere near .0525


When I last shared charts I was watching a Head & Shoulders reversal pattern emerging on the daily, and thinking bulls would make another attempt and fizzle at the gap near .065 to form a well defined right shoulder.

We did ultimately get a H&S pattern, but the right shoulder was almost nonexistent since bulls were apparently out of steam. The market then retraced as bears took over, as the pattern usually suggests.


Hourly chart (intraweek)




I'm watching for reversal patterns in particular to help validate if the market is behaving like in prior runs; ie whether ENZC is still likely to be in long term downtrend barring any news; ie will "Groundhog Day" likely continue. Head & Shoulders is most common, but ENZC has also seen a lot of the "Cat's Ears" pattern.

Some reversal patterns have well defined price targets that might further help gauge where this may be headed next, if price takes a downturn. All of these are only measurements - they don't drive any action on their own, except for technical traders who prioritize charts over DD.



What's different about this run? For that, I turn to the weekly chart..

First, this is the first time since January '21 that ENZC actually had a run that touched the weekly bollinger band top edge.

Also a difference, the 50 week moving average line is approaching the 200, and a crossing to the downside would be a "Death Cross" (the opposite of a "Golden Cross".) Death Cross is very bearish. The current price range would be a reasonable place for the market to push back against the last two years of sustained price weakness, even if just temporarily.

Also a difference, weekly RSI got closer than it's been in years to "oversold", and on the rebound it slightly outperformed its trajectory from previous runs. It's a subtle thing, but also an important one. Now there's a chance RSI might reflect upward off that pink line in the chart below.

Weekly chart (intraweek), omitted bollinger bands for clarity.



Back to reversal patterns, now I'm seeing a much bigger Head & Shoulders appearing, but currently missing a right shoulder. If trading forms that pattern during this week and the next, it might actually be a good thing:

- The longer ENZC trades mostly sideways, the more time it buys us into November when catalyzing news may drop.
- The slow drift upward suggests we may be seeing the beginnings of a bullish pennant (bullish continuation pattern)
- Price may indeed revisit that earlier gap area around .065 to form the right shoulder of the head and shoulders. That'd be a nice short term push.
- If we trade sideways from there and bears can't take over, the technical setup will be favorable for more upward movement.

Here's an illustration of all that:

Hourly chart (intraday)




And what a bearish case might look like (assuming bulls don't fizzle early like in that earlier H&S):




Unrelated, I've seen a few people wondering if ENZC could have an explosion in PPS without a prior jump in volume. I think the answer is yes, but with a caveat.

There don't seem to be millions of real shares up for sale at these levels. I think it's mostly just shorted ghost shares! However, with this ticker, there are about three billion chances to take profit during a strong run, so that should stifle any runs back to the old high unless the news is shockingly good. Every sell order is a chance for MMs to split up sells and target the bid. Short term pop, but bloated don't fly.

GLTA