Beyond Meat, Inc (NASDAQ: BYND) gapped down about 14% on Friday after lowering its quarterly revenue guidance. Beyond Meat will print its third-quarter earnings after the closing bell on Nov. 8 and although the lower-than-expected results are now likely priced in, the stock is still trading in a solid downtrend.
Beyond Meat neared a support level at $90.54 and rallied almost 5% higher intraday on almost five times the average 10-day volume.
There is a gap above, between $97.50 and $106.76, which is likely to be filled in the future.
Beyond Meat’s relative strength index (RSI) is nearing oversold conditions, which indicates the stock may bounce soon. When Beyond Meat’s RSI reached 30% Sept. 16 and Oct. 5 the stock bounced up 10% and 9%, respectively, over the days that followed.
Outside of Beyond Meat printing a bullish Marubozu candlestick on Friday, there is nothing to indicate the bottom is in and traders will need to watch the price action on Monday. It could be ideal if Beyond Meat back tests the $91.55 range and bounces to create a bullish double bottom pattern.
Beyond Meat has resistance above at $100.20 and $105.28 and support below at $90.54 and $82.82.
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