My interpretation of the chart: Towards the end of the second week in October last year (2009) MZEI began a sustained rise from $0.06 a share to a high of around $0.42 in early December. This represented an increase in share price of 'slightly in excess of 600%.
During this (approx.) 7 week period there were 23 "up days" and 13 "down days".
Indeed, a very bullish scenario...and one that would've continued if company time-lines hadn't changed.
During the period from the peak in early December to the present day there have been 39 "up days" and "34 "down days", with the current position still representing around a 55% decline (off the back of a 'significant' total period decline of around 70%).
In simple technical terms, when "up days" exceed "down days" yet the share price still shows a 55% decline from the peak in real terms, the overall sentiment is BEARISH.
However, if the recent "catastrophic fall" to an intraday low of $0.10 was 'almost exclusively caused by selling pressure from ONE LARGE SELLER', it stands to reason that the stock could (and should) recover to (and consolidate around) $0.25 - $0.30 per share in the next up wave.
In other words, it should claw back the ground it lost due to (possibly) a single seller putting immense downwards pressure on the stock in the short term...and then the natural market forces taking over and allowing new buying pressure to drive the stock back up to where it had been prior to the fall.
I do suspect it was the work of just one seller (looking at the market action), although I could still be wrong.
Regardless, my comment re "a dead cat bounce" made a week ago still stands. This stock could (in the short term) still fall away slightly..and this time it REALLY WOULD represent good buying opportunities for the "unshakable believers amongst you".
Cheers,
Smeatz
AI
