All it took were two important words to send shares of MMMB rallying by 21.8% on Friday, "Beyond Meat". MamaMancini's Holdings, Inc. (OTCQB:MMMB), a marketer of specialty food products, announced on Friday morning that it had entered into a strategic partnership with Beyond Meat, Inc. (NASDAQ:BYND). The Company will be introducing a new line of Italian foods using Beyond Meat’s plant-based Beyond Beef.
With the plant-based movement the latest craze among a more health-conscious consumer base, the partnership sparked excitement among MMMB shareholders. While the fundamental development is no doubt what moved the stock on Friday, this features is a technical exercise to see where the stock can likely go from here, now that the dust is starting to settle on the recent news.
With Friday’s impressive rally, shares of MMMB are now pushing up against a key technical level at $0.75. In our eyes, this is the level that now must be broken before we are convinced that this run has some legs. After all, this is a stock that has been in a long-term downtrend since early-2018, that only recently has been broken to the upside.
Should we get a $0.75 level breakout, further resistance looks to be had around $0.85, $0.95, $1.05 and $1.20. A breakout of the above key resistance level could bring a substantial rally up to at least the $1.05 level, which is where we’d be setting our price target.
As for support, we would watch the $0.60 level which was resistance until Friday’s breakout. Below that, more support enters the picture at $0.50. Should shares slip back below the $0.60 level, it would concern us that the bullish momentum is waning, so we’d set a stop loss at $0.59.
As mentioned off the top, the key to this trade is a break and close above $0.75 to provide us with a convincing entry level. As such, we would only enter this trade upon a close above $0.755, specifically on strong volume. Based on a $0.755 entry level, our upside potential looks to be 39.1% while our downside risk is limited to 21.9%.
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