Hi Guys! This is a Technical Analysis on Beyond Meat (BYND) on the 3 Day Timeframe.
I believe we are in the process of forming an Inverse Head & Shoulders Pattern.
Currently in the process of solidfying the Right Shoulder.
Which i believe will/ can take couple weeks to form before rallying past neckline.
So far every part of this pattern has been textbook.
SUCH THAT ->
Every part of the Head & Shoulders that formed, the VOLUME has reacted a specific way.
Stages of the Price Action
1. Downtrend to form Left Shoulder
2. The rally from Left Shoulder does not breach the Neckline
3. Downtrend from peak of rally to form Head
4. The rally from the Head also does not breach the Neckline
5. Downtrend from Peak of Head rally to form Right Shoulder
6. The rally from the Right Shoulder breaches and moves above the Neckline
7. A Return move from the breakout back to Neckline
8. Test of Support and a bounce from here going above the peak of Right Shoulder Rally
So far we've hit Stages 1-4.
We are currently in the process of forming the Right Shoulder and completing stage 5.
We need to pay attention on the completion of the Right Shoulder and the next stages of the Inverse Head & Shoulder, particularly this next potential RALLY.
It MUST Breach and move above the NECKLINE.
Volume Signs of Textbook Inverse Head & Shoulder
1. Left Shoulder has taller volume bar (higher volume) than Head Volume
2. Lighter volume or shorter bars seen for Head than Left Shoulder
3. The rally from Head has increasing volume that exceeds volume of the rally from left shoulder to neckline
4. Downtrend to Right Shoulder -> shows a declining volume bar height / declining volume
After the formation of the Right shoulder we need to see:
1. Sharp Spike on Volume during rally from Right Shoulder to Neckline breakout
2. Declining Volume during the Return Move
So far so good. And we need to continue to pay attention to make sure all the criteria is being hit.
Now targets for Right Shoulder Rally, is hard to tell.
BUT the previous rallies could not pass the RED RESISTANCE ZONE. So im thinking we can move into it but we dont get ABOVE it.
We need to watch the VOLUME -> there has to be a sharp spike on volume during this rally.
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DISCLAIMER: This is not financial advice, i am not a financial advisor. The thoughts expressed in the posts are my opinion and for educational purposes. Do not use my ideas for the basis of your trading strategy, make sure to work out your own strategy and when trading always spend majority of your time on risk management strategy