Are you joining us tomorrow to trade the open? One stock we’ll look at is Beyond Meat (BYND) (June 04, 2019)

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BYND 


Let’s look at Beyond Meat ( NASDAQ: BYND ) again. This could be another good move tomorrow. The stock is kind of defying gravity and that’s fine, I’m all for helium. The real resistance level here is $105.00. Last week the stock pushed above there a little bit and then it has been consolidating below that ever since. Today was an inside day; the price range from today, intraday, is completely engulfed by yesterday’s open and close so this is kind of a consolidation. It is in consolidation right now and it kind of has been for the last four days.

Look, the stock FEELS like it is at nosebleed levels. It opened at 45.00 or something like that so this is more than a double, this is monstrous, but we don’t know how high a stock like this can go because it is not really trading on fundamentals it’s trading on dynamics, just the price dynamic, and the float is pretty low.

Let’s kind of zoom in here on an hourly chart. Forget about the daily chart, it’s good for reference, 105.00, bad, that’s where the resistance is. So if we look at this, if we looked at this and viewed it as a daily chart, this stock is pretty close to breaking out. It is kind of in a little bit of a volatility squeeze, still a little tight, but it is close to breaking out.

Here’s how we would make this trade tomorrow; and I will be watching this tomorrow morning. If this stock starts trading above 105.00 then this is a stock that we want to SERIOUSLY consider getting long. And why is that? We are anticipating a move to 110.00 or 115.00? No. What it means is, if the stock starts trading above 105.00 then it means that the only people that are wrong on this stock are those that sold right at the top. Everybody else, in this stocks world, is in the green, they’re happy. Where do you think that selling pressure is going to come from? The only place that selling pressure has been, at 105.00, was back here for one day.

Again, these are hourly bars but we are considering them days for this. Then over the next several “days” or “hours”, the stock fell to $95.00 and that’s all, that’s all it fell. So all the folks that were buying all the way up here, they didn’t take profits on the pullback from 105.00. That’s meaningful. Now, listen to me because I’m giving you pearls here. If the stock kept falling, well, then it really wasn’t that meaningful, was it? That’s just what happened, the stock paused for a while and then tanked. But the fact that it fell down to here and then there has been enough demand to push the stock up here, this is an indication that there is still some demand for this stock. And it has been established that above 105.00 there is kind of no supply; like that was it.

And so if this stock starts to push back above 105.00, the only supply that was at this level knocked the stock down further, so if the stock pokes above 105.00 and stays that way for a bit, my bet is that these folks are not going to be selling because not that many of them sold here, you are going to have a lot more buying that comes in and this stock could really start running tomorrow.

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