Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Pepsi Breaks A Downside Resistance Line

Published 03/23/2021, 07:39 AM
Updated 07/09/2023, 06:31 AM

PepsiCo (NASDAQ:PEP) opened with a positive gap on Monday, above the downside resistance line taken from the peak of Dec. 29. The stock continued to trade north throughout the session, but fell short of reaching the 139.55 resistance barrier marked by the inside swing lows of Feb. 8 and 9. In any case, as long as the stock is trading above the aforementioned downside line, we will consider the short-term outlook to have turned back to positive.

We believe that market participants will soon drive the action towards the 139.55 barrier, the break of which is likely to pave the way towards the peak of Feb. 5, at 142.10. If that hurdle is not able to halt the advance either, then we may see extensions towards the 144.35 area, defined as a resistance by the peak of Jan. 11.

Shifting attention to our short-term oscillators, we see that the RSI topped fractionally above its 70 line, while the MACD remains above both its zero and trigger lines, still pointing up. Both indicators detect upside speed, but the fact that the RSI shows signs of topping makes us cautious that a small setback may be in the works before the next positive leg.

In order to abandon the bullish case, we would like to see a decisive dip below 131.35, a support marked by the low of Mar. 18. This will also take the stock below the upside support line drawn from the low of Mar. 4, and may initially aim for that low, at around 128.30. Another break, below 128.30, could extend the fall towards the 126.50 territory, marked by the low of June 15.
Pepsi stock 4-hour chart technical analysis

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.