Beyond Meat, Inc. engages in the provision of plant-based meats. Its products include ready-to-cook meat under the brands The Beyond Burger and Beyond Sausage; and frozen meat namely Beyond Chicken Strips and Beyond Beef Crumbles…
Take a look at the 1-year chart of Beyond (NASDAQ: BYND) below with added notations:
During the past six months, BYND had formed, and held, a very important level of support at $120 (red). Yesterday saw the stock break below that support. Not only does that imply lower prices for BYND, but the $120 area may act as resistance on future rallies.
BYND broke a key level of support at $120. A trader could enter a short position on any rallies up to or near $120 with a stop placed above the level. If the stock were to break back above the $120 level, a long position might be entered instead.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT