Chart Attack: MYND Life Sciences (MYND.CN) Double Bottom Reversal Watch as Psychedelics Continue to Bleed

MYND Life Sciences Inc. is a medical biotech drug research and development company focused on neuro-pharmaceutical and novel psilocybin drug development, diagnostics and vaccines. The Company is advancing pharmaceuticals through rigorous science and clinical trials, while diligently patenting and safeguarding its intellectual property. They have an existing Health Canada license which the company firmly believes will result in a significant competitive advantage in the emerging field of psychedelic therapies.

The last I spoke about MYND Life was in my 2022 Psychedelics Outlook. In that outlook, I mentioned how Cannabis and Psychedelics look cheap relative to everything else in the stock market. There was a lot of hype in Psychedelics early on with people like Kevin O’Leary and many others touting it as the next big investment opportunity. And then we saw the spectacular fall. The ebb and flows of market structure. Or some would say the retail trader getting laid to waste.

In previous Psychedelic articles, I have said shrooms are something you need to try to understand the positive benefits. I’m not talking about taking a trip, although that could get you bullish too. Micro dosing is what I suggest. A tiny dose which made me focused and happy in general. I don’t suffer from depression or other mental health issues, but I can totally see how mushrooms can help alleviate these issues and provide positive treatment. Neural pathways are shown to change by taking shrooms.

This is why I am bullish on the sector. I have experienced the real life benefits. We are still in the early stages, and there probably will be many hurdles along the way, but I like shrooms for the long term. Oh yea, there probably will have to be some sort of marketing campaign to get rid of the stigma associated with shrooms as a drug. The best way is to try it out and experience it, but it will be hard to convince some people.

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The downtrend continues. Unfortunately, the stock did not hold support at $0.625. We broke down, which I highlighted in my Psychedelics Outlook. I thought we might see some support at the psychological important zone of $0.50, but nope, we did not. We just buttered through it.

It is all about finding a bottom. As we know, markets move in waves or cycles. Nothing moves up or down in a straight line. Obviously, MYND Life Sciences is in a strong downtrend, but one day, we should expect to see a reversal. The question is whether it will be here or not? We can wait for some sort of good news, or see what the technicals are telling us.

As of right now, we are in a range between $0.20 to $0.30. We just need that breakout to confirm. The trigger for this confirmation would be a candle close above $0.30. I am not saying this will happen relatively soon. The stock could just continue to range between these price levels for sometime. Or the price can breakdown. If we close below $0.20, then the stock will be making new record lows, and we will have to wait for signs of basing once again.

I prefer the breakout trigger approach just because I won’t be left holding a range for a long time. I mean take a look at the range I highlighted between $0.625 and $1.00. We tried to breakout twice but no luck. If you bought the support thinking the range would hold on a third best, you would be down over 50%. Patience pays off.

The hope here is that current support at $0.20 will hold. It is a big day for the stock. If support holds, a double bottom pattern is in play. This is a reversal pattern which looks like a “W”. The key for the trigger of this pattern remains the breakout above $0.30.

But is there a reason to perhaps pick up at this support? Market cap wise, the company sits at just over $9 million. Some would see this as a great opportunity for entry. If you are someone bullish on psychedelics for the long term, you can pick up good companies at bargain prices right now.

Our Psychedelic’s Sector wizard Gaalen, chose MYND Life Sciences as one of his top picks in his “If I had a Billion Dollars: Psychedelics Sector Edition“. Be sure to subscribe and follow Gaalen’s psychedelics work. I like the technicals right now, but I will be sure to follow Gaalen’s weekly roundups to keep up with MYND Life press releases.

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I want to end off by showing you the Psychedelic ETFs, PSYK and PSIL. As you can see, it has been painful for the psychedelics sector. Cannabis has been feeling the pinch too, as small cap stocks take a hit. The positive here is how cheap they look. I am not saying now is the time to go all in, but one can consider picking up some shares of the ETFs.

What would be my entry signal? I would like to see a break back above the previous support. Currently, these supports now act as resistance. For PSYK the zone is $4.80, for PSIL the zone is $5.80. If we can climb above these zones, things will look brighter for psychedelics. At that time, I bet we will see reversal patterns being developed and/or triggered on many psychedelic stocks.


The post Chart Attack: MYND Life Sciences (MYND.CN) Double Bottom Reversal Watch as Psychedelics Continue to Bleed appeared first on Equity.Guru.

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