An update on BYND, a stock ive been watching. I have put out some ideas on it potentially bottoming out and this idea is an update on my previous thoughts.
This analysis is on the 3D chart
ALSO NOTE: Current 3D candle will close AUGUST 1st.
I've split my thoughts into Bullish/Bearish sections, Lets start with the GOOD NEWS first!
BULLISH THOUGHTS
Currently we have 5 candles above the MAJOR resistance line that formed June 2021. If you look at my previous charts, you'd notice that interacting with it, drove BYND down to its current prices.
THIS IS A VERY BIG ACHIEVEMENT in my opinion. Currently, indicating to me that we have attempted a trend change and have SUCCEEDED.
Which would also point to the idea that we have most likely BOTTOMED out.
HOWEVER, it is VITAL that we stay above this line and have it act as SUPPORT. There is a possibility of price moving down to touch the BLACK line, if it does we need to see how it reacts.
NOTICE also the BLUE Moving average, this is the 42 EMA which has converged exactly where the RESISTANCE turned SUPPORT line is, adding another layer of SUPPORT. This is good to see as well, with the current 3D candle forming a LOWER WICK. This shows buying pressure or power.
Notice also the GREEN Horizontal line, adding a 3rd layer of SUPPORT.
Lets now look at the RSI -> Notice how we've broken above the upper BLACK horizontal line and testing it as SUPPORT. It is crucial that it acts as SUPPORT and we stay above it. If so, BULLISH CONVERGENCE is at play, which could help us break through the RED RECTANGLE ZONE.
STOCH RSI -> Notice the curving occuring, indicated by green line. It would be great to see it curve and move back up above the 80 level. This would indicate bullish momentum coming back in. We don't want it to continue down.
MACD -> Notice how the size of the RED histograms have shrunk. This shows waning BEAR momentum. I would like to see more green bars print, bigger in size. Also notice the BLUE/ORANGE lines are now above the 0 level. This is a bullish sign, i would like to see it continue up and have more of a slope up as well.
BEARISH THOUGHTS
Notice the RED RECTANGLE ZONE and upper BLACK RESISTANCE line. We have been REJECTED from the RED ZONE and the BLACK line has helped to push us down.
We are also within a DESCENDING TRIANGLE, indicated by green horizontal line and BLACK RESISTANCE TREND LINE. These normally break to the downside. It could push our price below the MAJOR RESISTANCE LINE, taking us all the way down to the LOWEST BLACK LINE.
RSi is testing very important SUPPORT. We need to absolutely stay above for the BULLISH DIVERGENCE to play out.
STOCH RSI has crossed below the 80 level, which indicates bearish momentum. This could give the DESCENDING triangle "juice" to play out. Again, its crucial STOCH curves back up.
MACD, blue/orange line behavior doesnt look strong at the moment, in my opinion. I would like to see it slope up more and begin to move higher up. That momentum can be enough to push price up RED ZONE. WE absolutely do NOT want Orange line over the Blue cross, this would indicate downward pressure, could give DESCENDING TRIANGLE fuel to break down. We also don't want LIGHT GREEN HISTOGRAMS to print, as it also indicates LOSS of BULLISH momentum.
CONCLUSION:
BYND is ABOVE the MAJOR RESISTANCE, that played a huge part in pushing prices down. On top of that the 42 EMA is converging to add extra layer of SUPPORT. Until PROVEN OTHERWISE, we have SUCCESSFULLY completed a MAJOR TREND REVERSAL, and may have BOTTOMED OUT, in my opinion. In the days to come we have to stay above the 42 EMA (BLUE), and BLACK LINES, maintain above the BLACK HORIZONTAL line in RSI, stay above the 0 level on MACD and more. If things, continue to stay above, probability of getting above RED ZONE increases signficantly. However remember there is always a chance of the opposite occuring, trading is not a game of certainty, thats why it is important ot continuously observe the charts to look for new clues. Keep an eye on the PRICE ACTION staying above our SUPPORT zones, DESCNEDING TRIANGLE, STOCH RSI and other bearish signals.
TRADE IDEA:
DESCENDING TRIANGLE:
1. Break below = take a SHORT
2. break above the BLACK line, take a long
-> Approximating Target of upside or downside, measure the base (green line) to the upper part of black line, (remember this is an approximate target, it doesnt have to hit target exactly)
TESTING BLACK SUPPORT LINES
If you see price come back down, we will most likely test the BLACK LINES, which could be potential BUY ZONES
YELLOW SUPPORT LINE:
If we find our selves back here, this is MAJOR BUY ZONE, in my opinion.
You can even DOLLAR COST AVERAGE
STOP LOSS
"Below the MAJOR RESISTANCE LINE"
"Below 42 EMA"
THANK YOU for taking the time to check out my IDEA! If you liked what you read, please do support me by FOLLOWING, BOOSTING and COMMENTING on what your thoughts are!
DISCLAIMER: I am NOT A FINANCIAL ADVISOR. This is by no means FINANCIAL ADVICE. Everything expressed is my opinion and for educational purposes. When trading always set your own strategies, focusing majority of time on risk management. Protect yourself with stop losses!
CHECK OUT MY PAST BYND IDEAS BELOW**********
This analysis is on the 3D chart
ALSO NOTE: Current 3D candle will close AUGUST 1st.
I've split my thoughts into Bullish/Bearish sections, Lets start with the GOOD NEWS first!
BULLISH THOUGHTS
Currently we have 5 candles above the MAJOR resistance line that formed June 2021. If you look at my previous charts, you'd notice that interacting with it, drove BYND down to its current prices.
THIS IS A VERY BIG ACHIEVEMENT in my opinion. Currently, indicating to me that we have attempted a trend change and have SUCCEEDED.
Which would also point to the idea that we have most likely BOTTOMED out.
HOWEVER, it is VITAL that we stay above this line and have it act as SUPPORT. There is a possibility of price moving down to touch the BLACK line, if it does we need to see how it reacts.
NOTICE also the BLUE Moving average, this is the 42 EMA which has converged exactly where the RESISTANCE turned SUPPORT line is, adding another layer of SUPPORT. This is good to see as well, with the current 3D candle forming a LOWER WICK. This shows buying pressure or power.
Notice also the GREEN Horizontal line, adding a 3rd layer of SUPPORT.
Lets now look at the RSI -> Notice how we've broken above the upper BLACK horizontal line and testing it as SUPPORT. It is crucial that it acts as SUPPORT and we stay above it. If so, BULLISH CONVERGENCE is at play, which could help us break through the RED RECTANGLE ZONE.
STOCH RSI -> Notice the curving occuring, indicated by green line. It would be great to see it curve and move back up above the 80 level. This would indicate bullish momentum coming back in. We don't want it to continue down.
MACD -> Notice how the size of the RED histograms have shrunk. This shows waning BEAR momentum. I would like to see more green bars print, bigger in size. Also notice the BLUE/ORANGE lines are now above the 0 level. This is a bullish sign, i would like to see it continue up and have more of a slope up as well.
BEARISH THOUGHTS
Notice the RED RECTANGLE ZONE and upper BLACK RESISTANCE line. We have been REJECTED from the RED ZONE and the BLACK line has helped to push us down.
We are also within a DESCENDING TRIANGLE, indicated by green horizontal line and BLACK RESISTANCE TREND LINE. These normally break to the downside. It could push our price below the MAJOR RESISTANCE LINE, taking us all the way down to the LOWEST BLACK LINE.
RSi is testing very important SUPPORT. We need to absolutely stay above for the BULLISH DIVERGENCE to play out.
STOCH RSI has crossed below the 80 level, which indicates bearish momentum. This could give the DESCENDING triangle "juice" to play out. Again, its crucial STOCH curves back up.
MACD, blue/orange line behavior doesnt look strong at the moment, in my opinion. I would like to see it slope up more and begin to move higher up. That momentum can be enough to push price up RED ZONE. WE absolutely do NOT want Orange line over the Blue cross, this would indicate downward pressure, could give DESCENDING TRIANGLE fuel to break down. We also don't want LIGHT GREEN HISTOGRAMS to print, as it also indicates LOSS of BULLISH momentum.
CONCLUSION:
BYND is ABOVE the MAJOR RESISTANCE, that played a huge part in pushing prices down. On top of that the 42 EMA is converging to add extra layer of SUPPORT. Until PROVEN OTHERWISE, we have SUCCESSFULLY completed a MAJOR TREND REVERSAL, and may have BOTTOMED OUT, in my opinion. In the days to come we have to stay above the 42 EMA (BLUE), and BLACK LINES, maintain above the BLACK HORIZONTAL line in RSI, stay above the 0 level on MACD and more. If things, continue to stay above, probability of getting above RED ZONE increases signficantly. However remember there is always a chance of the opposite occuring, trading is not a game of certainty, thats why it is important ot continuously observe the charts to look for new clues. Keep an eye on the PRICE ACTION staying above our SUPPORT zones, DESCNEDING TRIANGLE, STOCH RSI and other bearish signals.
TRADE IDEA:
DESCENDING TRIANGLE:
1. Break below = take a SHORT
2. break above the BLACK line, take a long
-> Approximating Target of upside or downside, measure the base (green line) to the upper part of black line, (remember this is an approximate target, it doesnt have to hit target exactly)
TESTING BLACK SUPPORT LINES
If you see price come back down, we will most likely test the BLACK LINES, which could be potential BUY ZONES
YELLOW SUPPORT LINE:
If we find our selves back here, this is MAJOR BUY ZONE, in my opinion.
You can even DOLLAR COST AVERAGE
STOP LOSS
"Below the MAJOR RESISTANCE LINE"
"Below 42 EMA"
THANK YOU for taking the time to check out my IDEA! If you liked what you read, please do support me by FOLLOWING, BOOSTING and COMMENTING on what your thoughts are!
DISCLAIMER: I am NOT A FINANCIAL ADVISOR. This is by no means FINANCIAL ADVICE. Everything expressed is my opinion and for educational purposes. When trading always set your own strategies, focusing majority of time on risk management. Protect yourself with stop losses!
CHECK OUT MY PAST BYND IDEAS BELOW**********
Always wait for CONFIRMATION before taking trades, meaning don't buy positions if the active timeframe candle is peaking its head out of the triangle for example. Wait to see what the next candle does to assess if it has "CONFIRMED" the pattern break or not.