The Beyond Meat stock price has lost 20% in July. Furthermore, BYND has dropped in 9 of the last 11 trading sessions. So how much worse can it get?
Beyond Meat Inc (NASDAQ: BYND) closed Friday at $124.95, down 4.14 (3.21%).
Plant-based meat substitute manufacturer, Beyond Meat, is on its longest losing streak in 2021. Considering at the end of June, BYND had completed an upside breakout and trading above $160.00, the recent reversal is all the more shocking.
However, investors in Beyond meat are no strangers to volatility. The stock is notoriously wild. BYND gained 358% from the March 2020 low of $48.18, to January’s $221.00 high. In the following four months, it had more than halved, to a 2021 low of $99.86. One month, and 60% later, BYND was $160.00 trading, which brings us to the present day.
Whatever your personal opinions on the product (I’m personaly not a fan), the addressable market is huge. Furthermore, it is predicted that an increasing number of carnivores will embrace meat-free alternatives over time, which should stand BYND in good stead, considering it enjoy’s somewhat of a first-mover advantage.
However, potential is one thing, reality is something totally different. Worryingly, as I reported on June 25th, due to slow sales, Dunkin’ Donuts removed on of Beyond’s products from it’s breakfast menu.
I asked the question:
Is the Beyond Meat stock price about to get dunked?
Now with the stock achieving my initial $126.90 target, the question is, can BYND lose another 25%?
BYND Technical Outlook
looking at the daily chart we see the Beyond Meat stock price has broken down below the 50, 100, and 200-day moving averages.
Furthermore, the Relative Strength Index (RSI) is pointing sharply lower, and at 32.90 should soon work its way into an oversold reading. Although this normally indicates an asset is ripe for a reversal, BYND has a habit of overshooting in both directions.
My initial downside target is adjusted to $113.00, where horizontal support is offered by the November 2020, and January 2021 lows. Furthermore, it’s possible BYND exceeds this target and advances south towards the May, $99.86 bottom.
This negative view will remain valid as long as beyond Meat stays below the 50, and 100 DMA’s at $134.59, and $134.92, respectively.
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Beyond Meat stock price chart (Daily)
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