The El Segundo, Calif., plant-based-meat producer won’t be the only stock on investors’ radar, though, with Disney (DIS) - Get Report, Activision Blizzard (ATVI) - Get Report, Electronic Arts (EA) - Get Report and Pinterest (PINS) - Get Report, among others, reporting earnings as well.
Beyond Meat shares were hammered amid the coronavirus selloff. Before the pandemic, the shares were bubbling below $130 resistance and looking for a breakout. The selloff cut the stock down by more than 60% from the February high.
With the shares now back to $100 ahead of the news, investors are left in a tricky spot. Will the shares rocket back up toward resistance or pull back a bit as they have now doubled from the lows?
Let’s examine the charts.
Trading Beyond Meat Stock
Earnings can be the catalyst that ignites the move higher - or they can destroy the setup.
If it weren’t for the pending earnings report, Beyond Meat stock would have a great-looking chart.
The shares rallied hard up to the declining 200-day moving average and 78.6% retracement for the 2020 range.
With the help of some downgrades along the way, Beyond shares pulled back to the 20-day moving average and 50% retracement, before bouncing on Monday. If it weren’t for earnings, the bulls would be looking for a continued move up to resistance.
With earnings in play, we must consider the possible move in both directions.
On the upside, I want to see whether Beyond Meat stock can clear $117. If it can, it puts it over multiple layers of resistance and puts a test of $130 resistance in play. Over that and $160 is a longer-term upside target.
Should Beyond Meat shares move lower on the report, I want to see whether they can close above recent support, which is the 20-day moving average and 50% retracement.
Below that puts the 50-day moving average and 38.2% retracement in play, along with uptrend support. If those levels fail, the $72.50 mark is on the table.