Tag: stock market watchlist

Beyond Meats ($BYND) is a producer of alternative meats. The stock has soared as much as 800% since its IPO which was just over a month ago. The short squeeze has been incredible, but like all short squeezes, they come to an end. My ultimate price target for this stock, and my honest valuation of the stock is $21 a share. Before we see that level though it will likely be 12-18 months. However, for a short term trade, I am anticipating a quick gap fill down to the $100 level, by this Friday, or next Friday at the latest. You will notice the major gap to be filled under critical $125 support and on Friday we saw some very important intraday trend support breakdown which will helped be a trigger to the bigger spillout. The most important level on this name is the $150 level, that marks a 5 day trendline breakdown, and from there there isn’t much until down at $125, and under that we officially have a gap fill to $100. $100 is an important natural levle but also psychological level due to it being the level that the stock was flating around before its recent earnigns release. By August 1 i’m anticipating this stock is floating around the $80-$90 level which is about a 50% pullback from this level.

Beyond Meats ($BYND) The major short squeeze on Friday led to the short float moving from 51% down to as low as 25%. This means that roughly half of the shorts who were in BYND had to buy on Friday and exited their short position. Additionally, roughly 24 million shares were traded on Friday, and about 6.5 million of that were short sales. These numbers are important and mean a few things, first, this verifies that a large portion of buying on Friday were shorts exiting. And even though there was some volume with shorts trying to enter BYND on Friday, they only made up about 1/5th of all the trading volume from Friday. While there certainly are still alot of shorts in this name, on Monday we will start to see shares become available to short more readily, which should take a lot of pressure off the short squeeze. Next, we have to consider the very high turnover on the float from Friday. The stock traded 2.5X its float on Friday, making the average buy on Friday right at about $132. Now, this is a BIG deal. For a few reasons. This means that when the stock falls under $132, the average buyer from Friday is red. Additionally, this level is incredibly important because it acted as MAJOR support from friday as the stock put in a triple bottom mid day right at $132. Additionally this $132 level was major resistance earlier in the day as well. So, we have a lot of things happening and riding on $132 support. The fall under $132 should likely mean the stock is done making new all-time highs, and the slow trickle back to halfway understandable valuation levels kicks in. Keep in mind everything I mentioned here is purely off the intraday trading aspects of the stock, I won’t even get into the insane valuation levels. Price target on this stock within 5 years is $21. But thats meaningless if you’re day trading it. Also, would not be surprised at all to see a secondary this week so Beyond can take advantage of the valuation levels they are currently getting.