Technicals can definitely produce a false reading, particularily with stocks that have minimal volume, just a few buys or sells can trigger a certain reading.
So you have to sort of combine the technicals with the fundamentals to get a more accurate projection.
I do think though that in ATE's case, it does look like it wants to move higher, and given the fact that there are several expected catalysts in the near - intermediate term, I think we're looking at a gradual development of higher prices.

If we stay above $3.85 today in terms of the low for the day, that will make 5 days in a row of higher lows.
It's very early in the pattern, but it is suggesting the continuation of a higher range.

I'm maintaining that $4.22 gets breached relatively soon which would further establish and confirm what the technicals are suggesting.