Is It Time to Buy the Dip in Psychedelics? NUMI.TO, SEEL, GHRS and FTRP.TO

Another Psychedelics article, and once again I try to answer the question: is it time to buy the dips in Psychedelics.

My views remain the same. In this market, things like Psychedelics and Cannabis look cheap compared to everything else. I know the retail crowd is already beginning to show interest in Cannabis. I have seen plenty of Youtube videos from larger macro finance channels regarding Cannabis stocks. Not yet on Psychedelics.

As someone who began micro dosing, I really believe this is something you need to try out for yourself in order to understand the health benefits. I do not suffer from depression, but I can see why Psychedelics can do a lot to improve mental health. Microdosing does make you feel more happy, and you can still operate and do daily things such as driving your car and such.

The big obstacle remains government, and the stigma/taboo associated with psychedelics. You could say the same with cannabis. However, I can tell you that my young generation are moving towards psychedelics. It’s almost as if shrooms are seen as something that not only will make you happy and focus, but could really kick you in the butt and get you spiritually more tuned. Psychedelics are regarded as having life altering power.

For those interested in this kind of stuff, I suggest you read books detailing psychedelics in ancient history. Brian Muraresku’s “The Immortality Key“, and John Allegro’s “The Sacred Mushroom and The Cross” come to mind. Check them out.

When it comes to the Psychedelics, I am still looking at my ETFs to determine a new uptrend. Let’s take a quick look at PSIL and PSYK.

The last time I looked at PSIL, I was hoping for a reversal above $5.75. It did not happen. Another reason why it is prudent to wait for the confirmation breakout. Instead, we drifted lower, printing another lower high. Now, I am watching the $5.00 resistance zone. If we can close above this level, we can begin to say that a reversal is ready to play out. We would also get a close above my moving average which is an added bonus. In the last 7 trading days, we have ranged around $4.50 which is a positive sign that the bottom might be in.

The same analysis can be applied to PSYK. Very similar market structure, just different price levels. $4.20 is the resistance zone I am using for the upside. A break above would be positive. Once we tag $4.70, I would love to see a pullback before ripping higher to form an inverse head and shoulders pattern. Something like this:

Now it should be said that psychedelic stocks have been ripping in the past few days alongside the overall stock markets. Some of the companies I am going to discuss below have had 8% green days! On the stock market side, I am watching for 4500 to clear in a strong way on the S&P 500. If that happens, I think a lot of technical fear dissipates, and all markets begin to move higher once again. This will bring up the psychedelics as well.