ATAI looking to bottom out

Jan 15

After closely monitoring psychedelic stocks for approximately six months, my attention has been drawn to ATAI. Despite enduring a challenging period over the past couple of years, the stock appears to be signaling a potential turnaround.

Volume Analysis
A notable observation is the diminishing volume during each downturn, coupled with a substantial surge in volume in November of the previous year. This pattern indicates a decisive breakout from the prevailing trend.

RSI Insights
Simultaneously, the Relative Strength Index (RSI) reached its peak at 69. This represents the highest momentum level in the stock's history, signaling increasing strength. This noteworthy event marks the first instance of the weekly RSI surpassing the halfway mark, hinting at the initiation of a potential uptrend. Further supporting this indication is the presence of a bullish RSI divergence.

Anticipated Developments
My focus is straightforward, with two key criteria:

• Demand Zone Confirmation ($1.05 - $1.29)
  
• Previous High Breakout ($2.23)
  

The occurrence of these events could pave the way for significant upside potential in ATAI, as well as the entire psychedelic industry, with target projections reaching into the double figures.