BYND - bottoming out/ buy opportunityHi guys. So BYND is something ive been observing along with LMND and CVNA. WHich i believe these 3 have similar patterns, especially the BULLISH DIVERGENCE on large timeframes like the weekly.
This analysis of Beyond Meat is also on the WEEKLY. Im using the Weekly timeframe as i believe these stocks are good investments (holding for more than couple months) for this current bullish activity, which i believe is the beginning stages of a Bull run that will extend into 2024. Look for more info on upcoming ideas i post, as i will attempt to analyze MACRO stuff.
But anyway lets jump into BYND - Beyond Meat.
Keeping it simple. Ive outlined major levels on the Price Action.
White lines, Yellow Lines and Green Lines.
The 2 white lines are VERY IMPORTANT.
1. From bottom up, this 1st white line is showing a BULLISH DIVERGENCE when compared to my top 2 indicators (RSI and MACD). This is when the price action has a low, followed by a lower low. WHile indicators are printing higher lows (indicated by upward sloping white lines on the RSI and MACD).
2. The second white line, is this downward sloping Resistance line that depicts the bear move from BYND top price. We've have many interactions with this line but could not break above it and therefore it has pushed the price down to our current prices. Expect in upcoming days to weeks to test this white line again.
Remember the more times, price interacts with lines, the weaker the lines get so probabilities of breaking the white line are becoming more likely. Thats also why i believe BYND could have bottomed. And if we do break above this line, it will indicate trend change and probability of upside potential.
Yellow lines.
1. First one from bottom up, is major support level that was created Sept to december 2022. Last 3 weeks we've confirmed below it however, if you look on the MONTHLY timeframe, we have not yet confirmed below this line and are currently fighting to be above this. I see this as safe until proven otherwise. We are also currently on the weekly, trying to get above this line.
This also can mean we are forming or have formed a DOUBLE BOTTOM, which is a powerful bottoming pattern. Indicated by the 2 green curved lines.
2. Second yellow line from bottom up, is our next Resistance area.
# 3 and 4 from bottom up. Long ways to go till we reach these 2 yellow lines but just to give perspective. These are major major levels.
Green line
If we reach the green horizontal line, This is my 1st zone if it starts acting as support, where i say OKAY now we are ON and the next level would be the #3 yellow line. Things start to look GOOD here.
In relation to LMND and CVNA, which have played out. I believe Beyond meat will follow.
Especially if we close tomorrows candle above the 1st yellow horizontal line from bottom to top. I believe the bottom is and will be in.
INDICATORS:
1. RSI - Upsloping white line indicates BULLISH DIVERGENCE in relation to white line in Price action. Double bottom and having a DIVERGENCE is always a nice bottoming indicator. As my predictions for LMND were hit, i believe BYND will follow suit. Money is being made, itll move into these smaller cap plays.
WATCH the white horizontal resistance line. If RSI gets above this, the bullish divergence will start playing out and we will probably start breaking through yellow and green resistance lines drawn.
2. MACD - Histogram indicates stalling momentum but the lines indicate an uptrend of momentum, and convergence for the BULLISH DIVERGENCE.
2 indicators supporting the bullish divergence is better than 1.
3. Wave trend oscillator - Is showing a bottoming signal, though on this particular chart its not a great indicator due to false signals. I believe that along with double bottom possibly playing out, the Bullish divergence. This is current print is a psitive signal.
CONCLUSION:
Overall, BYND has been on a downtrend for 2 years now. Though that doesnt mean BYND can't go lower. ALong with Bullish Divergence showing in 2 indicators, a potential double bottom forming and volume picking up somewhat. I believe the worst has passed for BYND. The bottom is probable to be in. You can compare the movement of BYND to LMND in my post below or CVNA which has had a signficant move recently. In my opinion, this could be a nice area for buy or long entries.
If you liked what you read on this post, please do boost, follow and absolutely comment on what you thought or what you are thinking if you agree or disagree. Thank you.
DISCLAIMER:
The information posted in this idea is not financial advice, I am NOT a Financial advisor. This is my opinion only and for educational purposes. Please do take the time to think about strategies and to focus most of it on risk management. Never trade without stop losses. Thank you.
