The Beyond Meat stock price could be in for a bumpy ride today, following Dunkin’ Donuts decision to pull BYND’s breakfast offering from its menu.
BYND closed at $143.92, lower by 43.52 (-2.39%).
Beyond Meat (BYND: NASDAQ) has lost the support of Dunkin’ Donuts and crucially the support of the important 200-day moving average.
The Beyond Meat breakfast sandwich had been a staple menu item at 9,000 Dunkin’ locations. However, following poor sales, the plant-based offering will now be available at just hundreds of the Donut brands restaurants.
The Beyond Meat stock price had been enjoying a good run of form, gaining 57% in the month following its 13th of May $99.86 low.
However, in the last two weeks, BYND has retreated from the recent $157.20 high. Furthermore, there are some worrying signs that the decline is just getting started.
The daily chart shows us that beyond Meat is trading in a descending bull-flag formation. This often signals a pause in a rally before it continues higher again. Although, that may not prove to be the case this time around.
Furthermore, the Relative Strength Index (RSI) is showing a bearish divergence which adds to the negative outlook.
Lastly, the Beyond Meat stock price narrowly missed out on closing above the 200 DMA at $143.94.
The focus now shifts the 100 DMA at $138.49. If BYND loses this support level, $126.90 looks likely.
However, this bearish outlook will become invalid if the stock closes above the 200 DMA in today’s session.
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