Beyond Meat (BYND) is the Stock of the Day at Real Money Thursday. This high-flying IPO is experiencing the effects of gravity so let's take another look at the charts. We reviewed BYND just a few days ago noting that, "The stock could well push higher in the days and weeks ahead but the risk of a downward correction is growing and traders might want to consider booking some profits."
In this daily Japanese candlestick chart of BYND, below, we can see the reversal pattern four days ago - the doji with the bearish confirmation (red candle) the next day (Monday). On Tuesday we see a long upper shadow telling us that the sellers rejected the intra-day price strength.
Trading volume swelled in recent sessions which suggests a turnover of positions probably from strong hands to weak hands.
The daily On-Balance-Volume (OBV) line shows a peak and momentum has been declining.
In this Point and Figure chart of BYND, below, we can see that the software is projecting a downside price target of $128.
Bottom line strategy: 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.