Shares rallied as much as 13.2% on the day, so to see it cough up so much of its gains isn't a good look.
While it was no surprise to see Beyond Meat slip lower when the rest of the market did in early trading, it is surprising that it hasn’t rallied back with the market.
There's a reason for the stock to be mixed, too. Beyond Meat missed on earnings and revenue expectations, with the latter growing just 3.5% year over year. That’s not exactly indicative of strong growth.
Let’s see if some technical analysis can lend a hand.
Trading Beyond Meat
Late last week, Beyond Meat made a notable bearish development. Highlighted on the chart with a purple arrow, you’ll notice that the stock was rejected by 21-day moving average for the second day in a row, put in a bearish engulfing candle vs. the previous day, broke key support near $163 and closed at the lows of the day.
Worse, this action came on a Friday, giving investors a weekly-down rotation.
Any one of these observations on their own may leave bulls making an argument to stick with the stock. Once combined though, it made it hard to like this name in the short term.
For now, Beyond Meat stock is pinballing between the 100-day and the 200-day moving averages. Look to see which one breaks first. Momentarily it was the former, but prior support at $163 acted as resistance and rejected the stock on Friday.
Above $163 and Beyond Meat could really find some momentum.
Specifically, it would have me looking at $175, then the 161.8% extension near $188. That’s followed by $200, then a push toward the high.
On the downside, the 200-day moving average continues to act as support. Should it fail, it may put the $135 level on deck, along with the 50-week moving average.
A break of this area puts the key $120 zone in play. That’s followed by $114, then $100 - although the latter would represent a pretty big haircut from the highs.
Let’s not get too far over our skis. Instead, watch for a break off the 200-day moving average on the downside and a break of the 100-day on the upside. Then follow the levels from there.