A Stock in Accord With the Zeitgeist

Source: Clive Maund  (1/11/23)

Technical analyst Clive Maund reviews the 13-year, 3-year, and 1-year chart for Beam Global to tell you why he believes you should add this company on your radar.

In fact, when you look at the company’s website, you might be inclined to think it was started by some members of the World Economic Forum.

On the long-term 13-year chart, which includes the entire history of the stock, we can see that, after a deceptive false start early in 2018 when it looked like it had broken out but then slumped back deep into the Pan base pattern, it really did break out in 2020 and spiked dramatically, but soon reversed into a vicious 2-year long bear market that saw it lose all of the earlier gains.

Zooming in via the 3-year plus chart, we can see that it effectively hit bottom a year ago last January even though it made a marginal new low in October, and what has happened is that the October low made a Double Bottom with the January low.

The duration of this base pattern has allowed time for downside momentum to drop out completely and for the moving averages to drop down close to the price and swing into bullish alignment, and for the first time since early 2020, the 50-day has just risen up through the 200-day, a so-called Golden Cross that very often marks the start of a new bull market.

Zooming in again using a 1-year chart, we can see the Double Bottom base pattern in detail and how the price broke strongly above its moving averages in November, a move that looks like a preliminary breakout, preliminary because it hasn’t yet sustained a breakout above the resistance marking the upper boundary of the base pattern, which is at about US$19 – US$20, but with the averages crossing it looks like the next upleg will succeed in accomplishing this.

The December reaction back to the vicinity of its moving averages is therefore viewed as presenting a good opportunity to buy it ahead of the next upleg and here we should take note that, because of what it is doing, it has a certain amount of insulation from the vagaries of the broad stock market.

A big positive is that there are only 10 million shares outstanding, and of these, only 3 million approx. are in the float.

Beam Global’s website.

Beam Global closed for trading at US$16.86 at 3.03 pm EST on 5th January 5, 2023.

Note that the color green has been used for the charts in recognition of the company’s “green credentials.”

CliveMaund.com Disclosures:
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.

Disclosures:

1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.

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Charts provided by the author.