Beyond Meat (BYND) missed on their quarterly numbers Thursday evening and announced they were cutting their head count by 4%. But despite these signs of weakness the stock price was about 20% Friday. Go figure. Let's check out the charts and indicators.
In this daily bar chart of BYND, below, we can see a small bottom in May and June before the rally above the 50-day moving average line in early July. The slope of the 50-day line is now positive and prices are close to making a new high for the move up. The 200-day line still has a negative slope and it intersects around $61.
The daily On-Balance-Volume (OBV) line shows a long decline and only a slight improvement from late June. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside and is pointed lower for now.
In this weekly Japanese candlestick chart of BYND, below, we see just a mediocre chart picture. Prices are in a longer-term decline and still trade below the bearish 40-week moving average line.
The weekly OBV line shows a long decline and only a limited recovery. The MACD oscillator has turned upwards but remains well below the zero line.
In this daily Point and Figure chart of BYND, below, we can see a potential price target in the $53 area.
In this weekly Point and Figure chart of BYND, below, we can see a longer-term price objective in the $71 area.
Bottom line strategy: BYND was up strongly today but we have seen rallies like this in the past year that did not reverse the trend lower. BYND has only a six or seven week base pattern so I cannot get real bullish on today's strength. I am in no rush to become a buyer of BYND.
