Beyond Meat May Have Seen A Support Bounce: What's Next?

Beyond Meat May Have Seen A Support Bounce: What's Next?

Beyond Meat Inc. (Nasdaq: BYND) shares are trading higher Friday afternoon despite the company reporting worse-than-expected second-quarter EPS results and issued sales guidance below estimates.

Beyond Meat was up 2.5% to $124.92 at the time of publication.

Beyond Meat Daily Chart Analysis

  • Shares dipped following earnings, but the price looks to have bounced off support and could head higher again.
  • The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
  • Each of these moving averages may hold as a possible area of resistance in the future.
  • The stock fell down to $120 and looks like it's bouncing back higher. This price level has been able to hold as resistance multiple times in the past.
  • The stock has seen resistance near the $170 level in the past and could continue to hold this level as resistance in the future.
  • The Relative Strength Index (RSI) looks like it may have bounced and now sits at 41. The RSI at 41 means there are more sellers in the stock than buyers.

    (Click on image to enlarge)

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What’s Next For Beyond Meat?

Bullish traders would like to see the stock bounce at the support level and hold above $120. If the stock can hold above this level, it may be able to start to head toward resistance.

Bears would like to see the stock crack below the $120 level and start to hold it as resistance. Bears want to see the stock hold below both of the moving averages to maintain bearish sentiment.

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