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Revive Therapeutics (RVV.C) Fourth Touch at Support, Double Bottom in the Works?

Revive Therapeutics
11/13/2020

Revive Therapeutics (RVV.C) updated shareholders on its oral thin-film delivery system with psilocybin being developed under a research partnership agreement with Reed Research Group out of the University of Wisconsin-Madison.

Following several months of prototyping on a wide range of dosage forms, the Company has completed an oral thin-film strip product with psilocybin with dosage forms ranging between 1 mg and 20 mg and demonstrating its versatility through physio-chemical characterization (e.g. tensile strength of films) of bio comparable tannin-chitosan composite materials, dissolution and disintegration testing, and rate of psilocybin release from composites.   Currently technical and scientific data is being processed and finalized.

With certain States now legalizing the use of psychedelic mushrooms for therapeutic use, companies like Revive will be partnering with life science companies seeking to offer psychedelic products in the US where psilocybin use is legal.

My readers know that my expertise is on the technical side. I have a way with the charts. The fundamentals remain important for the investors that are looking to allocate their cash into companies which will provide value in the long term (but many hope in the not so distant future). The outlook for Revive Therapeutics in this regard is bullish, given the macro backdrop which shifted after the election.

For those wanting more information on Revive Therapeutics, and a run down on the fundamentals currently and going forward, look no further than our very own Lukas Kane and his latest article on “Revive advances mushroom bio-tech as new regs change the game“.

For my trader/investor followers, let me show you this chart:

Revive has hit and bounced off a MAJOR support zone (price floor). Don’t believe me? Look at what price has done here in the past.  My arrows indicate what price has done in the past when it came back to retest this support. Nice pops from this level with momentum carrying price higher.

As you can see, the resent retest at our support at 0.175 produced what is known as an engulfing candle. My fourth arrow, to the most right, points to that candle. It looks just as it sounds: A large candle (green in this case) which engulfs the previous candle, and is one of the strongest price action candle. It indicates the buyers stepping in aggressively.

What is limiting price is the resistance zone (price ceiling) above at 0.24-0.245. You can see price sold off from here just recently, and we are set to retest this resistance again. At time of writing, Revive is up over 6%, and price is at 0.235.

Price must break above this resistance zone for a rally, otherwise, price can range between this price floor and price ceiling I have just laid out. Many of my readers probably see a pattern set up which is familiar with us. Yes, a break and close above our resistance zone would confirm a double bottom ( “W” shape) chart pattern. This is a bullish reversal pattern.

If price break above resistance, the next resistance zone would come in at 0.315-0.325. Looking to the left, and all those wicks, sellers have defended this zone many times in the past. If price continues to rally, and we break above this zone, previous all time highs, and perhaps new all time highs, are on the radar.

Conversely, if we manage to break below this major support zone at 0.175, price would fall to the next support level which would come in at 0.125.

So in summary, this support bounce is significant because of how price has reacted the other times we have tested it. We would love to see the momentum from this bounce which is similar to those during June and July of this year. What is in our way is this resistance. A break and close above resistance is on watch, but do not count out the possibility we just range, and even break below support when we do so.

 

Full Disclosure: RVV is an Equity Guru marketing client.

 

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