MZEI_chart.pngMedizone International Inc (OTC:MZEI) is in traders’ radars after pushing up over 11% on Monday. The rally on extended volume was the consequence of the third sudden rise for the usually illiquid stock in the past year.

The rally looks impressive with an overall 64% gain, but the increase in trading activity might mean its end. In the past, MZEI has always topped or bottomed out on heavy volumes and this is not likely to be an exception, considering the lack of any positive stimulus lately.

The price is also at the technical resistance at $0.32, which meant the end of the very similar rally this  May. The controversial movement is not supported by fundamentals and the price only rose as Medizone announced they will retain the current PR firm and as the stock was later recommended by shamrockstocks.com.[BANNER]

  • There is hardly any business at all
  • The balance sheet shows heavy leveraged financial position
  • Cash on hand won’t be enough to sustain another quarter
  • Stock sales are the main source of income
  • Dilution was 20% over the last year

mzei_logo.jpgPromises should not be enough to get the stock price going, but clearly the market acts differently as these rallies make opportunities for quick profits. However, a delayed sell order could not only wipe out profits, but also lead to serious losses when short sellers start pushing the price down.