Buying Beyond Meat Stock (BYND) below $120 has been a good trading strategy this year. Will the recent dip to $115 offer the same, or is this time different? At first glance, it appears the pattern is holding out. BYND has climbed 6.3% in the last two days. However, the stock is notoriously volatile, and usually, by the time you have recognised a pattern, it is often too late.
Beyond Meat (NASDAQ: BYND), the California-based plant-based meat substitute producer, is no stranger to volatility. Following its $46.00 Nasdaq debut in 2019, the stock jumped more than 400% to $239.71 in under two months. Over the next four months, it collapsed 70% to just $70.00, before adding 90% by January 2020. Of course, like almost every listed asset, BYND plunged during March of that year. However, what followed was reminiscent of 2019. Beyond Meat stock gained 361% by January 2021, although BYND has been firmly on the defensive since then. However, despite all the turbulence, Since May of last year, Beyond has always found a bid below $120.
BYND Price Forecast
Running some rudimentary analysis on the daily chart, a clear band of price support is visible below $120. After climbing above $120 following the March 2020 collapse, the price has traded below it seven times. Of the seven, five have resulted in almost instant reversals. The rallies had ranged from 18% to 82.74%, with an average return of 64.5% before the price reversed. Whereas the one time it extended lower, BYND lost 17.09%, falling to $102.51.
This leaves last week’s visit as number seven. And this may present an opportunity for those happy to take on a high-risk trade. Purchasing BYND at yesterday’s closing price of $121.49 and placing a stop below $100 assumes a loss of $18% if the trade is unsuccessful. However, that may be a risk some are prepared to take, considering how the stock has historically performed.
Of course, this trade is speculative at best. And whilst it has proven a winner over the last 15 months, there is no guarantee it will going forward. And therefore, only traders happy with the risk-reward should consider this opportunity.