Cybin (CYBN.NE) is primed for a breakout on the intraday chart, as price approaches the $1.50 resistance zone. The stock is currently up 2% on the day with a volume of 177,000 plus shares traded. A break above $1.50 here would catch the attention of breakout traders followed by more volume.
Two ways to play this:
If you are more technical in your approach (guilty as charged), you would wait for an intraday candle break above $1.50. An important psychological zone I might add. So this would mean to watch for a 15 minute or 5 minute candle to close above to trigger the breakout. And then BOOM (enter rocket emoji here).
The second way to play this is to enter now, front running the eventual breakout. This would not only require confidence in the technical set up, but also bullish on the fundamentals of Cybin. Or just plain out bullish on Psychedelics.
To understand the Fundamentals, we turn to our very own Joseph Morton and his article covering Cybin’s recent news release regarding their subsidiary Adelia Therapeutics completion of of earnout milestones.
Cybin wants to revolutionize healthcare. On their website: Cybin is focused on progressing psychedelic therapeutics by utilizing proprietary drug discovery platforms, innovative drug delivery systems, novel formulation approaches and treatment regimens for psychiatric disorders.
What does this mean?
Joseph summarizes Cybin nicely:
Cybin is a biotech company working on developing drug discovery platforms, drug delivery systems, novel formulations, and treatment regimens for psychiatric disorders, using psychedelic therapeutics. Adelia is their subsidiary, and its aims include the development of medicinal psychedelics with improved dosing efficiency and the overall aim of meeting unmet medical needs. The strategic involves chemical alterations of tryptoamine derivatives which modify what they do to the body but without sacrificing their potential for therapeutic uses.
A lot of science. Heavy science.
The recent news is leading to a step closer towards investigational new drug designation from the FDA.
Cybin’s press release states:
“The achievement includes API Synthesis and optimization to demonstrate that two or more deuterated tryptamines show significant in vivo modifications of PK consistent with “Proof of Concept”, nomination of two deuterated candidates for full IND enabling studies, and completion of a certain API Manufacturing Contract.”
Joseph’s breakdown in layman’s terms:
First, API Synthesis is short for Active Pharmaceutical Ingredient, and it’s defined by the Food and Drug Administration (FDA) as any substance or mixture of substances used as an active ingredient in drug manufacturing. Specialized expertise is required to synthesis these molecules. Secondarily, a deuterated drug is a small molecule medicinal product wherein the hydrogen atoms in the drug molecule have been replaced by the isotope, deuterium.
Once again, I implore those who want to be up to date on the recent fundamentals to read Joseph’s work.
My strengths lie with technical set ups, and I really do like this ascending triangle. Watch for the breakout. We certainly will be keeping our eyes on it.
Full disclosure: Cybin is an equity guru marketing client.