The meat alternative seller, Beyond Meat Inc. (BYND) , is the Stock of the Day at Real Money this Tuesday. Beyond Meat shares had run up from below $50 to just shy of $190 since its recent initial public offering (IPO) in early May. BYND is sharply lower here on Tuesday on reports that JP Morgan lowered its fundamental opinion on Beyond Meat to a Neutral rating from Overweight. Let's check out the limited price history of this hot stock.
In this daily Japanese candlestick chart of BYND, below, we can see that prices marched higher and doubled in what I would bet was record time. An upside gap or rising window can be seen on Friday. Prices closed above the opening both Friday and Monday for white or bullish candles, but notice the large upper shadows as BYND closed well off the highs both days. Prices have gotten overbought a number of times in its short history as measured by the fast stochastic indicator in the lower panel and turnover has been heavy.
In this Point and Figure chart of BYND, below, we added the Volume by Price information on the left scale. The information is sketchy but it suggests that the move lower could be as fast as the move higher.
Bottom line strategy: BYND will probably be written about when business magazines review 2019. I would tighten your seat belt as BYND could return to the $100 area in a hurry.