Beyond Meat Elliott Wave Forecast (19-04-21)

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BEYOND MEAT ELLIOTT WAVE FORECAST

 

Before we begin our Beyond Meat Elliott Wave Forecast for this week.

 

For those who are not familiar with Beyond Meat Inc. (NASDAQ: BYND) , here is a quick introduction.

 

In a nutshell, Beyond Meat Inc. is a producer of plant based meat substitutes.

 

The company genetically designs alternative food products to simulate commonly eaten meats like pork, chicken and beef.

 

After its IPO, BYND began its initial rally from May 2019 as an impulsive 5-wave move in the form of a (1)-(2)-(3)-(4)-(5) sequence in Blue.

 

Reaching an interim high of $245.9 for the completion of the Wave 1 in White.

 

Based on the Elliott Wave Theory, after the impulsive 5 waves sequence, one would expect the share price to typically do a 3 wave pull back.

 

And that is exactly what happened based on our blog’s Beyond Meat Elliott Wave Forecast.

 

But the extend of the move was pretty deep, dropping beyond the Golden Fibonacci Retracement Zone of 61.8%.

 

Forming a [A]-[B]-[C] Zig Zag Corrective structure in Green.

 

With an extended [C]-Leg dropping down to a low of $71.3 in December 2019.

 

Supposing ending the correction and forming the Wave 2 in White at that point in time.

 

 

 

IMPENDING RALLY THAT FIZZLED

 

However, following the completion of that deep correction, which I originally labelled as an Wave 2 in White in my original Beyond Meat Elliott Wave Forecast.

 

One would expect the share price of BYND to take off for the start of an impulsive 3rd wave sequence.

 

And technically that is what happened, at least for the initial portion until the COVID pandemic struck.

 

As we all know, fundamentals news and market dynamics moves markets.

 

Our Beyond Meat Elliott Wave Forecast at that point in time was totally changed when the COVID pandemic hit.

 

Unfortunately for investors, the sudden outbreak of the pandemic in the first quarter of 2020 derailed the impending BYND rally.

 

 

 

EXTENDED CORRECTIVE STRCUTURE

 

What most Elliott Wave analysts deemed as the minor 2nd wave correction of the proposed larger 3rd wave impulsive move suddenly manifested into something much deeper.

 

Dropping further down to $57.99 on 20th March 2020 during the height of the pandemic.

 

Now, the originally forecasted [A]-[B]-[C] correction in Green now morphed into a much deeper (W)-(X)-(Y) corrective structure in Blue.

 

Again, based on the Elliott Wave Theory, for this Wave 2 correction to be valid, it must not retrace more than 100% of the start of Wave 1.

 

The primary invalidation level is highlighted in Red as shown in the Beyond Meat Inc. chart shown above.

 

We will technically label this new low as Wave 2 in White.

 

 

 

CONTINUATION OF THE DELAYED RALLY

 

The corresponding Beyond Meat Elliott Wave Forecast was for the delayed rally to continue its projection upwards.

 

What followed in the coming months was the start of another [1]-[2]-[3]-[4]-[5] 5-wave sequence in Green forming the Wave (1) in Blue.

 

Reaching a high of $194.95 on 9th Oct 2020.

 

 

 

CORRECTIVE STRUCTURE FINDING SUPPORT

 

What followed suit was an [A]-[B]-[C] Corrective structure in Green with a short [C]-Leg.

 

Making a “Double Bottom” in the process to form the Wave (2) in Blue.

 

This level is represented by the Red Dotted Horizontal Line as the Wave 2 Invalidation Level in the lower degree.

 

Coincidentally, it is also finding strong support at the Fibonacci Retracement Zone of 50%-61.8% of the prior move, see dotted rectangular box.

 

 

 

POSSIBLE RALLY IN THE WORKS

 

After the Wave (2) correction in Blue, BYND has made an impressive rally in the form of an impulsive Wave [1] in Green breaking the previous high.

 

Unfortunately, equally devastating was the steep correction that followed suit.

 

Which seeming formed a {w}-{x}-{y} corrective structure in Orange in the lower degree.

 

The good news is that the current corrective structure seems to be finding some form of support at the previous Fibonacci confluence zone.

 

Based on the current Beyond Meat Elliott Wave Forecast, I am inclined to believe that the bottoming out process should be nearing its end.

 

The share price of BYND could either move slightly lower to retest the previous Fibonacci Confluence at the 61.8% and then forge upwards.

 

Or it could just take off from here.

 

Either way, I have a stronger bias for further upside in the longer term.

 

Trade Safe and never risk more than 1% to 2% of your account equity on any trades.

 

 

For more potential trade setup suggestions on the US Stock Markets, check our Blog Posts On US Stocks.

 

 

Shorten your learning curve by downloading our complimentary Elliott Wave Cheat Sheets.

 

 

For more articles on the Elliott Wave Principle, check out our other posts in our  Elliott Wave Blog.

 

 

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