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Buy the Dip in Beyond Meat Stock? Not So Fast.

Beyond Meat stock is slumping on Friday after slashing its revenue outlook. The charts don't look great -- unless it can reclaim a key level.

Beyond Meat  (BYND) - Get Beyond Meat, Inc. Report is taking a beating on Friday, down over 13%. At the session low, the shares were down almost 16%.

Behind the move? It wasn’t a bearish post-earnings reaction like we’re seeing with Snap  (SNAP) - Get Snap, Inc. Class A Report or a revenue miss and selloff like Intel  (INTC) - Get Intel Corporation (INTC) Report.

Instead, Beyond Meat slashed its third-quarter revenue outlook, saying multiple factors played into the outcome. 

The company now expects revenue of roughly $106 million vs. a prior range of $120 million to $140 million and compared with consensus expectations of $133 million.

Beyond Meat is making 52-week lows in the session.

I’m surprised the stock is down only 13%. But is that pullback a buying opportunity or will the stock keep on sliding?

Let’s look at the chart.

Trading Beyond Meat Stock

Daily chart of Beyond Meat stock.

Daily chart of Beyond Meat stock.

For quite some time the $120 area was solid support for Beyond Meat stock. But that area failed to buoy the stock when it broke down in May.

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While the shares bottomed with the rest of the growth stocks, which endured a painful bear market and rebounded, Beyond Meat quickly found itself trapped in a painful downtrend.

The move sent the stock back down to the May lows just below $100. With today’s gap down action, shares opened below $100 and are struggling to stay within its downward channel parameters.

The silver lining here? There’s some hefty divergence on the Williams %R reading, which isn’t making new lows while the stock is.

That said, without any other technical catalyst in play, divergence alone isn’t enough to take action. 

We need something else — some form of reversal or rotation to give us additional proof that the stock is worth owning.

If Beyond Meat stock can reclaim $99.86 next week, bulls can use this week’s low as their stop-loss.

On the upside, that could open the door to the 10-day and 21-day moving averages, followed by channel resistance and the 10-week moving average, the latter of which has been active resistance.

On the downside, no area is jumping out as potential support. Therefore, we need to use extra caution with this stock and wait until it can give us some additional clues about when and where to be long.

As it stands, Beyond Meat stock is a no-touch in my book.