Beyond Meat upside target reached with exhaustion signals

Watch 239.70 key resistance on Beyond Meat for potential bearish reversal

Beyond Meat (BYND)

click to enlarge chart

Key elements

  • Since our last report dated on 12 Jul, Beyond Meat (BYND) has rallied as expected and met the medium-term upside target/resistance of 258.20 as per highlighted (click here for a recap).
  • It printed an intraday high of 239.71 on last Fri, 26 Jul. Thereafter, it has declined by 16% to print a low of 201.00 at the close of yesterday, 29 Jul U.S. session. After the close, BYND has reported better than expected revenue and reinforced its full-year outlook. However, it missed earnings consensus (-$0.24 EPS versus -$0.08 EPS). Also, it has announced a secondary stock offering just three months after is IPO. The share price of BYND continued to tumble by close to 12% in the after-hours session to print a low of 191.00.
  • Last three days of price action since 25 Jul, BYND has formed a daily bearish “Evening Star” candlestick pattern right at the 239.70 key medium-term resistance.
  • Interestingly, the 239.70 level is predetermined by a Fibonacci expansion level derived from Elliot Wave.
  • Last two days of trading has been accompanied by higher volume which tends to be accompanied by a medium-term reversal in price action coupled with the bearish “Evening Star” candlestick pattern.
  • Elliot Wave/fractal analysis has suggested that it may have completed the 5th wave impulsive upleg target, labelled as 5/ to complete entire medium-term bullish cycle in place since 02 May 2019 low. Thus, BYND is at risk now of shaping a significant correction of approximately 40% to retrace the prior bullish cycle.

Key Levels (1 to 3 weeks)

Pivot (key resistance): 239.70

Supports: 193.75 (trigger) & 142.36/138.00

Next resistances: 258.20 & 295.20 (Fibonacci expansion levels)


If the 239.70 key pivotal resistance is not surpassed and a break with a 4-hour close below 193.75 (also the ascending channel support) in the U.S. cash trading session is likely to trigger a potential multi-week corrective decline sequence to target the 142.36/138.00 support zone.

However, a clearance with a daily close above 239.70 invalidates the corrective decline scenario for an extension of the impulsive up move towards 258.20 and even 295.20 next.

Chart is from eSignal 

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.