Beyond Meat Inc. (NASDAQ: BYND) shows signs of an upcoming price surge according to its latest charts. Beyond Meat, Inc., a food company, manufactures, markets, and sells plant-based meat products in the United States and internationally.
It operates under the Beyond Meat, Beyond Burger, Beyond Beef, Beyond Sausage, Beyond Breakfast Sausage, Beyond Chicken, Beyond Fried Chicken, Beyond Meatball, the Caped Steer Logo, Go Beyond, Eat What You Love, The Cookout Classic, The Future of Protein, and The Future of Protein Beyond Meat and design trademarks.
#1 Falling Wedge Pattern Breakout: The daily chart shows that the stock was trading within a falling wedge pattern during the past few days. This pattern is marked in the daily chart in purple color. The stock has currently broken out from the falling wedge pattern. Once the stock breaks out from a bullish pattern like the Falling Wedge Pattern, it has the potential to move further up.
#2 MACD above Signal Line: The daily chart shows that the MACD line (blue color) is currently above the MACD signal line (orange color). This is a possible bullish setup.
#3 Bullish Stoch: The %K line is above the %D line of the stochastic in the daily chart, indicating possible bullishness.
#4 Bullish RSI: The daily chart shows that the RSI is currently moving higher and is now near 50, indicating bullishness.
#5 Above Support Area: As seen in the weekly chart, the stock is currently trading above a strong support area, which is marked as a pink color dotted line. This is a possible bullish sign.
#6 Bullish Stoch: The %K line (blue color) is above the %D (orange color) of the stochastic in the weekly chart. It is also moving higher from oversold levels. This is a possible bullish sign.
#7 Oversold RSI: The RSI is currently near oversold levels in the weekly chart. This typically indicates that a reversal may be imminent.
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, the ideal buy level for BYND is above the price of around $77.00. However, you can purchase half the intended quantity of shares of BYND above the price of $70.80.
TP: Our target prices are $89 and $100 in the next 4 to 6 months.
SL: To limit risk, place a stop loss below $63.00 (for entry near $70.80) and $70.00 (for entry near $77.00). Note that this stop loss is on a closing basis.
Our target potential upside is almost 16% to 41% in the next 4-6 months.
- Entry near $70.80: For a risk of $7.80, our first target reward is $18.20 and the second target reward is $29.20. This is a nearly 1:2 and 1:4 risk-reward trade.
- Entry near $77.00: For a risk of $7.00, our first target reward is $12.00 and the second target reward is $23.00. This is a nearly 1:2 and 1:3 risk-reward trade.
Overall, this trade offers nearly 2x to 4x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the falling wedge pattern. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
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