The "Lightning Round" segment of the Mad Money program is a fan favorite. One Real Money subscriber emailed me the other day to try to get an edge on calling in to ask Jim Cramer about a company he was interested in.
We reviewed the charts of BYND on July 1, the last time a Mad Money caller asked about the company. We wrote that, "Today's price strength is so far telling us that the bulls are still in charge. Maintain longs from prior recommendations and continue to risk a close below $120. The $200 area is our first price target."
Let's take a look at the charts again today.
In this daily Japanese candlestick chart of BYND, below, we can see that prices have weakened since July 1 but remain above our $120 risk point. Prices are below the rising 50-day moving average line but above the bottoming 200-day moving average line.
The On-Balance-Volume (OBV) line is holding up very well and shows improvement so far this month even though prices declined slightly. I take this as a positive sign.
The Moving Average Convergence Divergence (MACD) oscillator has declined to the zero line and needs watching to see if we get a sell signal or reverse to the upside.
In this weekly Japanese candlestick chart of BYND, below, we can see a number of lower shadows in the past two months telling us that traders on this time frame are rejecting the lower prices.
The 40-week moving average line is bottoming while the MACD oscillator has narrowed slightly but it's still constructive.
In this daily Point and Figure chart of BYND, below, we can still see a potential upside price target in the $199 (or let's just call it $200) area. A trade at $124 is not terrible but would get our attention as it would be a new low for the move down.
Bottom line strategy: I still find the charts and indicators of BYND as positive but from time to time all charts will zig when they should zag. Continue to risk a close below $120 on previous longs and move BYND to the top of your market minder to watch it closer for now.