Excellent post Mark and I completely agree. Nice job pointing out the differences between now and the summer with respect to overbought conditions.

Speaking of overbought, it should not be interpreted as an automatic indication to sell or situation to fear. ZEN is no stranger to running in overbought territory for long periods of time. The daily RSI is up there (as is the stochastic oscillator), but the trends on both are clearly upward and thus in-line with the s/p as opposed to divergent. Furthermore, the other technical indicators on ZEN are universally bullish and therefore showing there is room for this run to continue; MACD/KST even seem like their upward slope is increasing. Chaikin Money Flow is solid as are the related accumulation-distribution line & On Balance Volume indicators (both of which are tracking the share price nicely). Recently, the s/p has turned the upper Bollinger band into swiss cheese as the s/p has broken through 3 out of the last 4 days. This fact clearly shows just how much buying pressure there is, as that is quite a feat and lends credence to the uptrend continuing; this appears to be a very strong, solid trend. There is nothing I can see for now that would when taken in consideration with the overbought conditions would make me concerned.

After forming a doji in the last session indicating a bit of indecisiveness between buyers and sellers we had a very nice solid white candle today. I was actually a bit surprised to see it was that "easy" to break through the resistance in the $2.78 - $2.85 range. The $2.80 range was established as a resistance point from mid-December ... plus we had the 200-day MA there and the $2.83 mark represented a 62% retracement from the high of $3.50 in mid/late November. So you would have expected a possible tough go but it seemed to breeze through today. The volume today wasn't anything to write home about, hanging in just at the average. It would have been nice to see it a little higher to give the resistance break a little more confidence. I think another upward move tomorrow would erase any doubt (for the cautious types out there) ... and then as you mentioned, next stop is $3.50.

I also can potentially see what could be interpreted as a cup pattern evolving. If we were to get a handle to subsequently form in and around the $3.50 mark with a short lived pull-back, and then an ensuing breakout above $3.50, that would be something.

Not sure if it will work, but I attached my own chart with some comments. Things are looking very good ... very good odds that we will see more up days for sure ... definitely lots of room to grow.

Respectfully,

BUMBLEBEE