Charting the Food Groups
A tale of plungers, recoveries and steadies
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There are nearly as many publicly traded food companies as there are varieties of food, but investors can use technicals to deal with the complexity. How? Five examples show how charting can indicate patterns of price behavior to help guide trading decisions. Let’s use them to look at three “groups” of food stocks: plungers, recoveries and steadies.
Plungers
A lot of common stocks fell hard between late 2021 and late 2022. Some of the worst drops were experienced by companies that went public in 2019 and 2020. Take the case of Beyond Meat (BYND).
This stock lost about 95% of its value from its November 2021 peak, but much of the drop could have been side-stepped by observing the exceptionally clean top formed between March...
