The Los Angeles-based producer of plant-based meat substitutes, Beyond Meat Inc. (NASDAQ: BYND) shows signs of an upcoming price surge according to its latest charts.
Bullish Indications
#1 Downtrend Broken: The daily chart shows that the stock’s prevailing downtrend has been broken and the stock has started to move higher. This indicates possible bullishness.
Daily Chart – BYND
#2 Above MAs: The stock is currently trading above its short-term moving average of 50-day SMA as well as the long-term moving average of 200-day SMA. This indicates the overall bullishness of the stock.
#3 MACD above Signal Line: As you can see from the daily chart, the MACD line (blue color) has currently crossed above the MACD signal line (orange color). This indicates a possible bullish bias.
#4 Bullish Stoch: The %K line is currently above the %D line of the stochastic in the daily chart, indicating possible bullishness.
#5 Bullish ADX and DI: The ADX line has started to move up from below –DI and +DI lines. The +DI line and the ADX line is also currently above the –DI line. This indicates possible bullishness.
#6 Cup and Handle Pattern: The weekly chart shows that the stock has been forming a cup and handle pattern. This is marked in the chart below in purple color. A cup and handle pattern is a consolidation and breakout pattern. A breakout from this pattern would indicate that the stock could move higher. Typically, stocks retrace to the breakout level again before continuing the upmove.
Weekly Chart – BYND
#7 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the weekly chart. This indicates possible bullishness.
#8 Bullish RSI: The RSI is currently above 50 and moving higher. This indicates the strength of the current upmove.
#9 Bullish Stoch: The %K line is currently above the %D line of the stochastic in the weekly chart as well, indicating possible bullishness.
Recommended Trade (based on the charts)
Buy Price: If you want to get in on this trade, you can purchase the shares of BYND if it closes above the nearest resistance area, which translates to a price of around $166.00.
TP: Our target prices are $180 and if it closes above that level, $190 in the next 3-6 months.
SL: To limit risk, place a stop loss at $156.70. Note that this stop loss is on a closing basis.
Our target potential upside is almost 8% to 15% in the next 3-6 months.
For a risk of $9.30, our target rewards are $14.00 and $24.00. This is an almost 1:2 and 1:3 risk-reward trade. In other words, this trade offers 2x to 3x rewards when compares to risks.
Risks to Consider
The stock may reverse its overall trend if it breaks down with high volume from the breakout level of the downtrend line. 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.
Happy Trading!
— Tara
This is the #1 Stock to Buy for the AI Tidal Wave [sponsor]Marc Chaikin warned people about NVDA before its 2023 bull run - now he's naming his next pick or the AI tidal wave. Learn more here.