For his first Executive Decision segment of "Mad Money" Monday, Jim Cramer sat down with Ethan Brown, founder, president and CEO of Beyond Meat (BYND) , the plant-based food maker that saw its shares plunge 15% when it reported earnings late last week. Beyond Meat shares rebounded 7.1% Monday.
Brown said Beyond Meat is not a food company. Rather, he said, it is an innovation engine and it means different things to different people. Those individuals over age 40 come to the brand for health benefits such as less salt and cholesterol. Millennial consumers love that Beyond Meat is building a more sustainable planet.
Brown said Beyond Meat is committed to grabbing as much market share as it can and won't focus on profits. We last looked at the charts of BYND on Feb. 27 and wrote at that time, "With upper shadows on the candle chart and a downside price target on the Point and Figure chart, traders should avoid the long side for now."
Let's grab a few updated charts.
In this daily bar chart of BYND, below, we can see that prices gapped down below the rising 50-day moving average line. The daily On-Balance-Volume (OBV) line has worked lower, telling us that sellers continue to be more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has moved closer to the zero line.
In this weekly Japanese candlestick chart of BYND, below, we can see the large bearish (red) candle of last week. With only one day out of five on the chart below, we cannot draw much of a conclusion.
In this Point and Figure chart of BYND, below, we used daily data. The area above $104 or so is now likely to act as resistance.
Bottom line strategy: With significant overhead resistance the chart of BYND will need a period of rebasing and sideways price action before another rally gets underway.