Beyond Meat Stock Bounces 3.5% From the ‘Value Zone’

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Written By: Elliott Laybourne
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    Summary:
  • Buying Beyond Meat Stock below $120 has been a good trading strategy this year. Will the recent dip to $115 offer the same, or is this time different?

Buying Beyond Meat Stock (BYND) below $120 has been a good trading strategy this year. Will the recent dip to $115 offer the same, or is this time different? At first glance, it appears the pattern is holding out. BYND has climbed 6.3% in the last two days. However, the stock is notoriously volatile, and usually, by the time you have recognised a pattern, it is often too late.

Beyond Meat (NASDAQ: BYND), the California-based plant-based meat substitute producer, is no stranger to volatility. Following its $46.00 Nasdaq debut in 2019, the stock jumped more than 400% to $239.71 in under two months. Over the next four months, it collapsed 70% to just $70.00, before adding 90% by January 2020. Of course, like almost every listed asset, BYND plunged during March of that year. However, what followed was reminiscent of 2019. Beyond Meat stock gained 361% by January 2021, although BYND has been firmly on the defensive since then. However, despite all the turbulence, Since May of last year, Beyond has always found a bid below $120.

BYND Price Forecast

Running some rudimentary analysis on the daily chart, a clear band of price support is visible below $120. After climbing above $120 following the March 2020 collapse, the price has traded below it seven times. Of the seven, five have resulted in almost instant reversals. The rallies had ranged from 18% to 82.74%, with an average return of 64.5% before the price reversed. Whereas the one time it extended lower, BYND lost 17.09%, falling to $102.51.

This leaves last week’s visit as number seven. And this may present an opportunity for those happy to take on a high-risk trade. Purchasing BYND at yesterday’s closing price of $121.49 and placing a stop below $100 assumes a loss of $18% if the trade is unsuccessful. However, that may be a risk some are prepared to take, considering how the stock has historically performed.

Of course, this trade is speculative at best. And whilst it has proven a winner over the last 15 months, there is no guarantee it will going forward. And therefore, only traders happy with the risk-reward should consider this opportunity.

Beyond Meat Stock Price Chart (Daily)

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Written By: Elliott Laybourne

Elliott Laybourne is an accomplished Hedge Fund sales and Investment bank trading specialist. Elliott also started a successful Base Metals Brokerage business in partnership with ABN AMRO clearing bank. He worked on the open outcry trading floors at the London International Financial Futures Exchange 'LIFFE' and the London Metal Exchange 'LME.' He also provided research and execution services for Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and Pennsylvania State Public School Employees Retirement System, as amongst others. Today, he focuses on providing trading consultancy and business development services for family office and brokerage clientele.

Published by
Written By: Elliott Laybourne