How DatChat, Camber Energy Have Faired Through Back-To-Back 'Zack Attacks'

Benzinga

Oct. 15, 2021, 12:45 PM

Unfortunately, @MrZackMorris couldn’t freeze the markets with a "time out!" call when Kerrisdale Capital and Culper Research issued back-to-back short reports on Camber Energy, Inc (NYSE:CEI) and DatChat, Inc (NASDAQ:DATS), respectively.

The popular fintwit personality, with his buying brigade of over 567,000 followers, has been targeting various stocks in order to slam short sellers. Kerrisdale Capital and Culper Research may have taken it personally and issued attacks both directly and indirectly aimed at Morris, with Kerrisdale Capital taking time on Twitter to personally thank the fintwit leader for giving it “the most fun actionable short since $GSAT.”

The reaction of the short reports on Camber Energy’s and DatChat’s stocks were mixed, with Camber Energy plummeting over 50% following the Oct. 5 print and DatChat rallying about 17% after the Oct. 14 attack was issued.

See Also: What's Going On With DatChat's Stock?

The Camber Energy Chart: Camber Energy hit a Sept. 29 all-time high of $4.85 and immediately entered into a downtrend, which brought the stock down to an Oct. 6 low of 86 cents. Camber Energy then bounced up to the $2.45 level before retracing over 50% lower over the following 5 trading days.

The stock has failed to make another lower low as of yet, which indicates it may consolidate into a tightening range on the daily chart within a falling channel. The stock’s decreasing volume also indicates a consolidation period has begun. Once the pattern is further developed and completed, both the bulls and the bears can watch for a break on big volume.

Camber Energy is trading below the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which are bearish indicators. The stock is trading above the 200-day simple moving average (SMA), however, which indicates overall sentiment is bullish.

Bulls want to see further consolidation on low volume and then for big bullish volume to come in and break Camber Energy up from the falling channel. The stock’s most recent lower high sits at $1.63 and if Camber Energy can break above the level, it will indicate a trend change. There is resistance above at $1.84 and $2.29.
Bears want to see Camber Energy continue to reject the upper descending trendline of the channel and for the stock to continue in its downtrend until it loses support at the 86-cent mark. A loss of support at the level would also confirm the larger downtrend is still intact. There is further support below at 48 cents.

cei_oct._15.png

The DatChat Chart: DatChat went public on Aug. 13 and hasn't been trading long enough to have created any solid support and resistance levels. The stock is also volatile due to an extremely small float of just 12.25 million shares.

On Friday DatChat was consolidating Thursday’s price action on low volume. In its consolidation, DatChat was working to create an inside bar pattern on the daily chart, with Friday’s price action completely within Thursday’s range.

Both bulls and bears will want to watch for whether DatChat eventually breaks north or south from the pattern to gauge direction, although the stock may need more time to develop into a more predictable pattern.

DatChat is trading pinned between the eight-day and 21-day EMAs, with the eight-day EMA trading above the 21-day. The stock will need to rise up above the eight-day EMA in the coming days to avoid it crossing below the 21-day.

DatChat is trading above the 20-day SMA, which is healthy. On Friday the stock tested the SMA as support and bounced up from the level.

Like Camber Energy, bulls will want to see further consolidation on low volume and for a pattern to develop to indicate future direction. DatChat has some resistance above at $12.43.
Bears will also need to watch for a pattern to develop and can also watch for increasing bearish volume as an indication the stock will trade lower. There is support below at $10.22 and $8.55.