MindMed (Nasdaq: MNMD) (NEO: MMED) (DE: MMQ) (the “Company”) is an industry-leading biotech company engineering psychedelic-inspired therapies. The company is developing a combinatorial approach to treating mental illnesses with hallucinogenic (e.g., LSD) and non-hallucinogenic (aka “microdosing”) therapies in clinical settings. MindMed's core philosophy is that a coordinated effort between therapists, drug developers, and patients is needed to develop personalized, precision treatments on a patient-by-patient basis.
The current MNMD chart setup is compelling:
MNMD shares are consolidating near former resistance at $3.80 - a bullish falling wedge has formed since MNMD peaked at $5.00 on August 1st. We view the 23% decline during August as presenting a strong buying opportunity ahead of a busy final four months of 2023 for MindMed.
Key Fundamental Factors/Catalysts:
Meanwhile, the medical psychedelics sector is maturing and experiencing consolidation as evidenced by yesterday's news of Cybin's plans to acquire Small Pharma. Full FDA approval of MDMA for PTSD in the first half of 2024 also stands to greatly benefit the sector, both in terms of greater investor awareness and clinical adoption of psychedelic therapies.
Traders can implement a ~10% stop loss from the $3.85 entry price (200-day moving average is a useful guidepost), while targeting a new 2023 high above $5.00 per share.
Author owns shares of MindMed at the time of publishing and may choose to buy or sell at any time without notice.
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