Beyond Meat Bottom Pattern Formation Spotted

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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Thank you for taking the time to read my analysis. Hope it helped keep you informed. Please do support my ideas by boosting, following me and commenting. Thanks again.

Stay tuned for more updates on BYND in the near future.

If you have any questions, do reach out. Thank you again.

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

Comment:

A little update: For those people looking to take positions for the potential rally that goes above neckline.

Note, the formation of each body part of the Inverse Head & Shoulders can take some time to form. Look at Left shoulder, it took about 83 days to form before rally. Not that the RIght shoulder has to follow to the t, but it could take somewhere between how long the head took to form to left shoulder. While it forms we need to PAY ATTENTION also to volume. Also note if we get BELOW the HEAD, it will invalidate the Inverse Head & Shoulders Pattern. Any questions do reach out.

Comment:

Pay attention to Volume! Last couple weeks theres been a persistent slight increase in VOLUME.

If this is the right shoulder, our next move is the RALLY that moves beyond the Neck Line depicted by BLUE line.

Once we get 1 bar showing a massive spike, that would be an indication our move has started.

Keep an eye next coming weeks. Ill keep you up to date as well with any developments.

Comment:

Current developments in BYND price action getting close to INVALIDATION of Inverse Head & Shoulders.

As we are lower than the Left Shoulder. RIght should atleast in textbook patterns should NOT move below lowest price level of the left shoulder.

We are very close to the Head as well.

I would like to see use move back into the Orange Rectangle asap.

This would push probabilities back to a Inverse Head & Shoulders formation.

Comment:

Inverse Head & Shoulders Mapped out in this Idea has been INVALIDATED. As we have reached Below what i thought was a head print.We will need to reassess BYND. Quick glance may indicate our Current price action may actually be the head. However,for me to think a Inverse Head & Shoulders again, i would wait for the formation of the right shoulder as it would print a Higher low, providing a key sign of an attempt for trend change.