Quite the price action on Filament Health yesterday. The company is all about paving the way for the first ever natural psychedelic drug. Filament Health Corp. operates as a natural psychedelic drug discovery and extraction technology company. It propagates psychedelic plants; conducts genetic research; performs extraction procedures; runs in-house trials; and distributes IP and drug candidates to drug developers, researchers, and other licensed parties.
Recent news details an agreement with EntheoTech Bioscience, a Canadian company focused on innovative psychedelic solutions for chronic pain and mental health. The company provides interventional pain treatments and ketamine-assisted therapies. Additionally, EntheoTech is engaged in the research and development of natural psilocybin formulas with their own unique strain library to promote optimal brain health while reducing chronic pain, mental health conditions, and opioid overuse.
The latest press release regards Filament Health participating in key psychedelic conferences. Three to be exact throughout the month of December 2021. These conferences include the Horizons: Perspectives on Psychedelics Conference, H.C. Wainwright 2nd Annual Psychedelics Conference, and the GCI Summit Psychedelics Conference.
Speaking about Horizons, their psychedelic ETF PSYK, isn’t looking too bullish. We had hopes of a support bounce at $6.50. Instead we continued to tumble lower, printing new all time record lows yesterday (Tuesday). Perhaps they needed Filament Health in their ETF. Take a look at yesterday’s price action:
An absolutely insane daily candle yesterday. The stock was at one point, up over 50% for the day. At time of writing, the stock has given back some of those gains (expected profit taking on a large pop), and is holding onto 15% gains for the day. Absolutely no news which makes this move a little sus. Looking at the intraday daily chart, we only saw shares traded in the first few hours, with the big volume coming in at 10:09 am and 10:10 am EST. Again, a bit sus.
Volume wise, we had 238,950 shares traded. In November, we had days where 384,713 and 571,797 shares were traded. That volume did not move the stock as yesterday’s volume. I mean that daily candle move took out months of price action. It seems like today’s price action was a big player behind the scenes entering, and taking advantage of the level 2 market orders. Perhaps this buyer is expecting big news in the near future? Time will tell, but definitely unusual price action on the stock.
Note where the move stalled. At our major $0.40 resistance zone highlighted in blue. Going forward for the long term, Filament Health needs to get a daily close above this resistance to continue momentum higher and into new record highs. Chris Parry is a big fan of psychedelics and Filament Health. Natural psychedelics will be a key advantage for this sector in the future, and Filament Health meets the criteria with its extraction and purification methods.
I’m a fan of this sector, and am watching for an overall bid in the sector by watching that PSYK ETF for signs of basing and a range for a bottom. Stocks in general are under pressure given the Federal Reserve event risk. With pressure on macro caps, the smaller cap stocks will feel the pain even more. Currently, I would await until after the Fed announcement today (Wednesday December 14th 2021) before entering new positions, or accumulating shares.
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