Introduction
I have been following $BYND for the last two years to find a good moment to take an initial position for the longer term. Beyond Meat Inc. started trading in May 2019 at around $45 and in just a few months hit an all time high at $239.71 close to $240.
$BYND is currently trading at around $48-$50 from the recent low at around $36, which the recent low was 85% from crest 2019 and two years from the low in March 2020.
As we have learned from W.D. Gann often a bear market could take up to 5 years, with 2 years down, 1 year up and 2 years down. We are now 2-3 year from all time high, so a recovery may be possible if fundamentals and demand for the products improve. So this might be a moment to consider a temporary bottom in $BYND.
The COVID period starting in 2020 did probably hurt the further expansion of $BYND and we are still waiting for e.g. the McDonalds trial period in the USA to come to an conclusion. If its products gets to the menu in all McDonalds USA restaurants this will add to a positive investment thesis.
You may like or not like the product, it is perhaps a matter of taste. Going forward products like $BYND and other replacements for meat in the world will certainly contribute to a more sustainable environment.
Before stepping in and take a position in $BYND I personally favour to see higher highs and higher lows first as a confirmation a new trend may have set in. We are not that far yet, as you can see in above chart.
Also the fundamentals are not that great: the company is not profitable and according to many analysts $BYND is not expected to break even in the coming years. There are several fundamental warning signs that may hint for a value trap. You may want to have a look at the fundamentals first and you could check this with e.g.: Gurufocus first for an indication and think twice.
So, be careful and watch the chart in front of you. Do not try to catch a falling knife, or step into the market to quickly without any confirmation a change in trend has occurred. It can take quite some time before this stock settles down on a bottom.
Anomalies can happen and if the indices around the world are going to dive further downwards or the fundamentals do not clear up for this stock $BYND may get another hit downwards as well.
From a technical, geometry and planetary perspective there are some reasons to have a more positive outlook on $BYND on the short to medium term.
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P.S.: On all of our communications, posts and analysis our Terms of Use and Disclaimer apply. Hypothetical or simulated performance based on past cycles have many limitations. Hence, past performance is no guarantee for the future. Anomalies can occur and cycles can contract, extend or invert. So, be careful and always watch the charts in front of you.