For an "Executive Decision" segment of Mad Money, Jim Cramer spoke with Ethan Brown, president and CEO of Beyond Meat Inc. (BYND) , the plant-based meat alternative that saw a 140% surge in sales this quarter that sent shares up 26% by the close of Wednesday.
Brown explained that there are patterns emerging that prove our global food chain is under pressure. The world cannot sustain the current ratio of animals to humans.
Let's get the word out about the BYND's charts and indicators.
In the daily bar chart of BYND, below, we do not have a lot of trading history but we can find some buy signals and some bullish divergences. Prices gapped higher Wednesday and at the top of the range on heavy turnover. BYND is above the 200-day moving average line and the 50-day moving average line but the slopes of both of these indicators are still negative.
The On-Balance-Volume (OBV) line made a new high for the move up telling us that buyers of BYND have been more aggressive. The OBV line did not make a new low with prices in March and that bullish divergence tells us that someone probably used the price weakness to buy.
The Moving Average Convergence Divergence (MACD) oscillator also did not make a new low with prices in March and this bullish divergence tells us that the trend strength was better than the price action.
In the weekly bar chart of BYND, below, we do not have much history, but what we do see is bullish. A move above $135 will be a new high for this move up and open the way to further gains. Prices are above the bottoming 40-week moving average line.
The weekly OBV line is constructive with a new high and the MACD oscillator crossed to a cover shorts buy signal.
In this daily Point and Figure chart of BYND, below, we do not have price gaps and volume and ignore some of the price noise. The chart shows an impressive upside price target in the $200 area.
Bottom-line strategy: It is interesting how supply-chain problems with beef, pork, and chicken has been a boon to BYND. The charts are positioned for further gains. Aggressive traders could go long BYND on a small dip to $120 or on strength above $135. Risk to $105 for now. The Point and Figure target is $200.