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6 months ago
#Bullish on Beyond Meat | $BYND
A meal without meat is, in my opinion, unacceptable. Many health-minded consumers will agree with my bias, having turned to plant-based protein provider, Beyond Meat (NASDAQ: BYND), for simple, tasty solutions. The company was founded in 2009 in Los Angeles, CA. It has since relocated and it is currently based out of El Sugundo, California, and claims to have 257 employees. BYND‘s products are somewhat limited at the moment, however currently include: Beyond Burger®, Beyond Beef®, Beyond Sausage®, and Beyond Beef® Crumbles.
$BYND had One of the Hottest IPOs of 2019.
The company premiered in May at $25 per share. Fast forward two months later, shares of the company were exchanging hands for as much as $239.71 for up to +858.84% in possible upside. Much has changed since then; especially the share price. BYND has bounced off hard support at $71 and change. The only question that remains is ‘Where will the company go from here?’.
We witnessed Some Fabulous Price Action Last Week:
- Gap got filled on very high volume.
- Stock regained support from 34- & 50-day moving averages.
- Volume spiked as the short squeeze began.
- Point of control (red line) was crossed and now support.
- BYND may have to consolidate between support and resistance before making next bullish break.
- From the chart, we can see a massive area of limited price action, which when reached could result in a frantic move higher.
- Be aware that the Fibonacci .382 level is an area where rejections are very common.
When we Consult the Daily Indicators, there are Several Bullish Factors to Consider:
- RSI in strong uptrend and front running price action, may consolidate before next move higher.
- Stochastic is also bullish having crossed on Jan 6th.
- Histogram ticking higher and green.
- MACD in very bullish uptrend since early November, a cross above zero is a short covering signal for the bears and that the trend is changing.
- Momentum has crossed back above the zero line.
- OBV has reversed and ticking higher.
The Weekly Chart Confirms a Bullish Sentiment Swing, where we see a Massive Volume Candle:
The fact is that we have never crossed the point of control (red line) and we finally re-gained moving average support for the first time since July. The weekly price candle is bullish engulfing and signalling a continuation higher.
Targets to Consider:
Short-term $110 – Fibonacci retrace level and 100-day moving average.
Medium-term $132 – Prior to Fibonacci resistance and price resistance.
Longer-term $175 – Fibonacci golden pocket at .6128 retrace level.
A break above the $100 price-level should result in some nice potential gains for BYND shareholders, but some consolidation in current range may be necessary first.