Filament Health (FH.NE) is an exclusively-natural psychedelic drug discovery and extraction technology company. Its mission is to see safe, approved, natural psychedelics in the hands of everyone who needs them as soon as possible. Filament believes measurable and efficacious medicines will be a catalyst to addressing many of the world’s mental health problems and that natural psychedelics provide an optimal option for widespread adoption of these substances.
Consumer trends are shifting more towards organic and natural. People care and actually research where the products they buy and consume come from. At first, it sort of came as a surprise to me that there is such a thing as natural psychedelics, especially since the ones I am microdosing claim to be on the label. But the organic and natural trend is strong and growing. This will be a huge distinguishing factor for Filament Health, which is why the company offers a very intriguing long term proposition.
A few months ago, one of our distinguished writers wrote a piece on Filament Health and why synthetic psilocybin will be a game changer. For more on the fundamentals, check this article out.
The last time I covered the technicals on Filament Health was back on August 16th 2021. Unfortunately, the chart did not confirm the breakout as I was hoping. More on the current technicals in just a bit.
Since the last technicals, there has been some recent news worth noting. Firstly, Filament Health shipped their first batch of good manufacturing practices (GMP) certified natural psilocybin into the United States. The export originated from Filament’s Vancouver facility, intended for the University of California San Francisco (UCSF) translational psychedelic research program (TrPR) to be used in their expected phase 1 FDA trial and attendant clinical trials.
This is the first move after Filament picked up their first patent for the extraction and standardization of natural psilocybin on August 3, and after an amendment to their Health Canada dealer’s license, acquired on July 29, giving them permission to work with psychedelics.
On the market side, Filament Health began trading on the OTC Pink Market in the US and also submitted an application to get on the QTCQB Venture Market.
Thirdly, Filament Health expanded their intellectual property portfolio with their 20th patent application. The patent includes claims to the processing, extraction and standardization of psychoactive compounds in support of the company’s clinical programs. The company contends that the examiner’s allowance and acceptance of all the stated claims demonstrates evidence of the patent’s novelty, utility and inventive steps.
Don’t sleep on these patents. As Chris Parry has said in a previous Investor Roundtable, the patents are huge.
Now let’s take a look at the current technical set up:
$0.30 was our support zone which did not hold. Just applying standard breakout market structure, $0.30 now becomes the new resistance. What was once support now becomes resistance, or a price ceiling. Once price retakes $0.30, we can turn more bullish on Filament Health based on the technicals.
Currently, it looks like we could be finding and forming a support at $0.26…very close to $0.25 which is a major psychological level for stocks under $1.00.
Volume wise the stock sees average volume of 24,588. It should be noted that the first breakdown below $0.30 support saw volume of 212,978.
Other than climbing back above the $0.30 support, I think it would be prudent for investors to watch for Psychedelics to get going. I a liking technically what I am seeing on MindMed, but here are two ETFs to watch:
PSIL is looking good! With a daily close above $9.50, we confirm a breakout.
The same can be said about the Canadian ETF, PSYK. But, I would want to see a close back above the $7.40 zone as it would take out current resistance.
In summary, the psychedelic ETFs are showing signs of money flowing back into psychedelics. Positive signs. I will be watching for signs of Filament to be getting a bid, and hopefully, will be able to get a close above the $0.30 zone for us!
