Looking for a good volatility squeeze? Try Beyond Meat ($BYND) (January 07, 2020)
BYNU
Beyond Meat ( NASDAQ: BYND ); this is interesting. I rode this up a bit; I didn’t make as much money as I could have, but isn’t that always the case? Seriously, isn’t that always the case? I have avoided the stock because it has been on the way down here.
I saw somebody in our trading forum today mention that Beyond Meat ( NASDAQ: BYND ) was starting to break out above $80.00; above the 50-day moving average on huge volume; more than twice average volume. I am looking at the chart and this is looking pretty good to me. It is not really my kind of trade; I like them up in the upper right-hand corner as opposed to down in the lower right-hand corner. I call this the winner’s circle and I call this, down here, the penalty box, so I like them up here. With that said, this is a really big move, 12.5 percent today.
I think you can buy this stock. Now, you kind of have to give it a little bit of room here because it was a big move today. But this to me looks like a stock that could go significantly higher. There is not a big short interest on this stock so I am not really looking for a short squeeze. I just think that they report earnings in 20-days, on the 27th, and obviously the market thinks that (1) the stock “has gone down enough”.
It has lost more than 2/3 of its market cap from the very high. But then now you are seeing buyers coming in saying, “Not only do I think it’s done going down but I think it is going to start going up.” And all that buying is sparking more interest in the stock and so I think it is going to be a self-fulfilling prophecy. Frankly, I am looking for $100.00 before earnings; I really think it can make that kind of run. So I would be long this stock and I would keep a stop maybe just a little bit below the 50-day moving average.
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