Wednesday, 16 September 2020

Trade Idea: BYND is Poised to Break Out

Note:  I wrote this post last week (but only publish it today), and so the chart is a few days old. Today it's not poised, but has already broken out. The rest of the post should be read from last Thursday's point of view.


I bought this yesterday for a breakout play.

This stock is also similar to UBER technically. You can read that post here. I.e. Both BYND and UBER are in a technical inverse head & shoulder pattern about to break out. Although UBER is closer to a textbook look while BYND is somewhat skewed.

Everything i said about UBER in that post applies here except BYND is about half a step behind in terms of breakout. And a little bit less bullish. Another thing is that BYND is more volatile, perhaps because they're less liquid than UBER.

Other similarities are that they're both branded, recently listed stock with great potential.

And i don't think all the similarities are all coincidental.

In the last 4+ months, the stay-at-home stocks got all the love while both UBER and BYND are one of those "blue-sky" stocks but haven't got too much love because they're somewhat affected by Coid-19. Not as much some businesses that involve large crowd like casinos, cruise liners, airlines, cinemas, etc. Nevertheless they were affected. They're stocks that sit somewhere between stay-at-home and re-opening trades. Also SBUX and DIS also exhibit similar charts and in similar group of stocks. All good for buying at this point in time for long term hold. So you may want to time their entries or simply ride the rough patches.

Lately with re-opening being gradually rolled out in stages while the days of vaccines are drawing near. These types of stocks like UBER and BYND are starting to get some love because they hadn't have a lot of run, yet.