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Zogenix, Inc. Message Board

  • mentalalchemist mentalalchemist Feb 14, 2013 10:47 PM Flag

    The Short Squeeze will be the primary catalyst for ZGNX

    Another under-$10 stock that looks ready to trigger a major breakout trade is Zogenix (ZGNX), which is engaged in the commercializing and developing products for the treatment of central nervous system disorders and pain. This stock has been hammered by the bears during the last three months, with shares down by 42%.

    If you take a look at the chart for Zogenix, you’ll notice that this stock has been uptrending strong for the last two months, with shares soaring from its low of $1.11 to its recent high of $1.60 a share. During that uptrend, shares of ZGNX have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of ZGNX within range of triggering a major breakout trade.

    Market players should now look for long-biased trades in ZGNX if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $1.47 a share and then once it takes out more resistance levels at $1.50 to $1.60 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 1.4 million shares. If that breakout hits soon, then ZGNX will set up to re-fill some of its previous gap down zone from last December that started around $2.40 a share.

    Traders can look to buy ZGNX off any weakness to anticipate that breakout and simply use a stop that sits close to some near-term support at $1.35 to $1.27 a share. One can also buy off strength once ZGNX takes out those breakout levels with volume and then simply use a stop that sits just below its 50-day moving average of $1.47 a share or near $1.35 a share.

    This stock has a decent amount of bears involved in the name, since its current short interest as a percentage of its float is rather high at 9.4%. Look for a monster short-squeeze to develop if shares of ZGNX get into that gap down zone with heavy upside volume.

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    • What's going on here mental Thomas? Unless I didn't see you acknowledge Seeking Alpha writer Robert Pedrone as the writer of this, you just copied someone else's article as your original post. Please tell me I'm wrong. Otherwise you may be just another pumper who criticizes shorts for doing the same thing. You did
      admit to pumping as TomPain on another forum no?

      • 1 Reply to portly86
      • Nothing wrong with pumping with good information dummy. Most if not all people posting in these forums have a vested interest and 98% of all posts are either pumps, or dumps. The difference is if your doing it with good info, or lies. I choose to do it with the latter and evidently other people feel the same way considering I have the only thread in the ZGNX sub forum with a whopping +12 thumbs up.

        This forum does not allow posting of links, or editing unfortunately. What was important was the information I posted. Mistakes happen in the wee hours when your tired, so I missed a citation. It occurs to me your some kind of forum stalker, or one of those in your face wannabe forum cops. Whatever you are I am all to familiar with the type. Making wild guesses and accusations as to a persons identity on other forums. Sniping at people you don't like presumably because they are getting in the way of your personal agenda.

        I wonder how many log on accounts you have for Yahoo to be able to talk to yourself and pretend with multiple personalities and dole out negative thumbs down?

        Whatever you are you have gone out of your way to give me a very negative impression of yourself.

    • If short interest is that high, get ready for another bear raid. It will be the last chance to make the short profitable before approval.

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