10/31/2022
Happy Halloween!
As everyone prepares for costume parties and handing out candy (or ignoring the doorbell, that’s fine too), the question for us is whether or not we’ll be tricked or treated today…
If we’re tricked, I’m sure the leading actor in Ernest Scared Stupid will have something to say about that:
(As ridiculous as it may be, I’ll watch it every time.)
Now, one stock that began populating into my watchlists was one that I didn’t expect to see. And I don’t think I’m alone in this…
Is the recent bullishness just Halloween shenanigans?
No idea… But check out the chart on Beyond Meat (BYND):
I’m looking at the 15-minute chart for this analysis.
Frankly, I’m keeping just about every trade of mine small and on a lower time frame.
I’m leery of any long setups in these market conditions…
…but that doesn’t mean a swing here and there isn’t worth looking at.
The most distinct aspect of this chart is the recent liquidation of buyers in the price range of the gray box.
Notice how quickly investors were pulled out of their positions? Only for it to resume that exact price level.
And this is where I’ve marked the beginning of the Fibonacci Extension to look for further price targets…
However, this is only after testing buyers at the white dotted line before creating an “Adam & Eve” Pattern.
That’s the V-shaped bounce into a handle at the bottom.
Now, the three white arrows (not triangles) denote what areas the Fibonacci Extension is basing from.
Still with me?
For further confirmation, I’d want to see the Alpha Waves tool we use daily in TRADECOMMAND maintain a positive composite Stochastic… That’s the multi-colored line that needs to stay above zero.
The colored dots are the other thing…
Remember, this is the 15-minute chart, so it makes sense that movements will be more erratic. However, the important part is that it portrays a bullish picture with more green than red.
Going back to the upper chart, I’d expect a quick move downward to liquidate the shaky-handed bulls prior to resuming the trend.
Targets? I’ve circled them according to the extension levels which just so happen to line up with prior Resistance channels…
We see this all the time in the live trade room.
Good luck.
Keep moving,
(Disclosure: I hold no position in BYND.)
This material is not an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Any performance results discussed herein represent past performance, not a guarantee of future performance, and are not indicative of any specific investment. Due to the timing of information presented, investment performance may be adjusted after the publication of this report. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, equal any corresponding indicated historical performance levels or be suitable for your portfolio.
