Beyond Meat (BYND) is trading lower Friday on the heels of news that Yum! Brand's (YUM) Taco Bell is not pleased with a test run of a meatless product for carne asada.
Let's check out the charts and indicators of BYND again.
In our Oct. 22 review of BYND we wrote that, "Continue to stand aside from the long side of BYND." Let's see if there has been any improvement.
In the daily bar chart of BYND, below, we can see that prices have been in a decline since late January. BYND is trading below the declining 50-day moving average line and the declining 200-day moving average line.
The On-Balance-Volume (OBV) line has been weak since early July and tells us that sellers have been more aggressive than buyers for several months. The Moving Average Convergence Divergence (MACD) oscillator is bearish but has recently managed a cover shorts buy signal.
In the weekly Japanese candlestick chart of BYND, below, we can see a bearish picture. Prices are in a decline and we have yet to see a bottom reversal pattern and we do not see any lower shadows yet. The slope of the 40-week moving average line is negative (bearish).
The weekly OBV line is pointed down and the MACD oscillator is in a bearish alignment below the zero line.
In this daily Point and Figure chart of BYND, below, we can see that the software is projecting the $47 area as a potential downside price objective.
Bottom-line strategy: BYND has been hurt by a string of negative news headlines. Going forward we need to watch for some bearish news which prices ignore. That will be a step in the right direction.
