Beyond Meat (BYND) could sink still lower in the days ahead, according to the charts and indicators I watch. We last reviewed BYND at the beginning of the month where we said, "Hopefully traders booked profits as per our recommendation on July 24. Stand aside for now as we want to see if BYND will remain on the menu."
In this daily bar chart of BYND, below, we can see how our indicators have weakened. Prices are below the now declining 20-day moving average line and they are likely to close today below the rising 50-day average line.
Trading volume has been contracting this month and the On-Balance-Volume (OBV) line shows a slight decline from late July. A declining OBV line only happens when trading volume is heavier on days when BYND closes lower.
The Moving Average Convergence Divergence (MACD) oscillator is in a take profits mode and close to a sell signal as it is close to crossing the zero line.
In this updated Point and Figure chart of BYND, below, we can see a potential downside price target around $150 but the price at the volume bars on the left scale shows little potential support below $150 so a deeper decline is possible.
Bottom line strategy: When a commodity is falling in price the common strategy is to buy "hand to mouth" and that is what I would do with BYND. No reason to buy in bulk.