Beyond Meat, Inc. (BYND) shares rose more than 2.5% during Thursday's session as its Beyond Breakfast Sausage Links hit shelves across the country.
- Beyond Meat shares moved sharply higher during Thursday's session as its Beyond Breakfast Sausage Links hit shelves across the country.
- MKM Partners Chief Market Technician also suggested that the stock was one of the "better looking charts out there" with a $200 or $240 price target.
- The stock moved into overbought territory over the past couple of sessions, but the moving average convergence divergence (MACD) remains in a bullish upswing.
The company's Beyond Breakfast Sausage Links will be rolled out into grocery stores throughout the country, including Kroger, Albertsons, Sprouts, Harris Teeter, Wegmans, and Whole Food Markets in October. In total, the company's plant-based meat products are available in about 26,000 retail outlets across the nation. Earlier this week, MKM Partners Chief Market Technician JC O’Hara said that the stock was “one of the better-looking charts out there" with a $200 or $240 price target.
From a technical standpoint, Beyond Meat stock extended its rally to fresh highs during Thursday's session. The relative strength index (RSI) moved further into overbought territory with a reading of 76.49, but the MACD remains in a bullish uptrend. These indicators suggest that the stock could see some consolidation before resuming its move higher over the coming sessions.
Traders should watch for some near-term consolidation between support levels of $160.00 and resistance levels at around $200.00. If the stock breaks out, traders could see a move toward $240.00 levels. If the stock breaks down, traders could see a move toward the 50-day moving average at $141.87 or support levels of around $120.00, although that seems less likely to occur given the bullish intermediate-term trend.
Support is a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest. As the price of assets or securities drops, demand for the shares increases, thus forming the support line. Meanwhile, resistance zones arise due to selling interest when prices have increased.
The Bottom Line
Beyond Meat shares rose more than 2.5% during Thursday's session after its breakfast sausage products hit shelves across the country. While the RSI moved into overbought territory, the MACD indicates that the intermediate-term trend remains bullish.
The author holds no position in the stock(s) mentioned except through passively managed index funds.