Mindset Pharma is a company that is developing “psychadelics” for medical / therapy use, which is now a big growth sector. We are looking at it here because its stock believed to be forming a small base that will lead to an uptrend resulting in significant percentage gains.
It hasn’t been trading for long and a 6-month chart includes all of its history. It shows that after an intraday spike when it came to market it then drifted lower for a few weeks before settling into marking out what is believed to be a tight base pattern that will lead to renewed advance. A big reason that the pattern is expected to resolve with a break to the upside is the persistently strong Accumulation line shown at the bottom of the chart.
While obviously a speculative play, it is attractive to us here because it has potential for big percentage gains from the current price, while downside risk can limited by the expedient of placing a stop beneath the nearby support, say at C$0.74, and with this proviso it is rated a speculative buy here.
Mindset Pharma website
Mindset Pharma Inc., MSET on CSX, closed at C$0.89 on 29th January 21.
Posted at 9.15 am on 1st February 21.