Stock of the day: PepsiCo

By Tomasz Wisniewski|

Published: August 29 2023, 08:58 GMT+0

Stock of the day: PepsiCo


In recent times, PepsiCo’s stock trajectory paints a vivid picture of contrasts. If August started by dampening the spirits of many investors, with the stock experiencing a significant pullback, the latter half of the month heralded a ray of hope. As the saying goes, “Every cloud has a silver lining,” and for PepsiCo, this comes in the form of three key supports that could potentially define its near-future movements.

The primary bulwark against a further decline is the long-term uptrend line, tinted in green. This isn’t just a simple line on the chart; it’s a historical testament to the stock’s resilience. Each time the stock has approached this level, a spirited V-shaped recovery has ensued, offering solace to bullish stakeholders.

Parallelly, a horizontal support at approximately $177, delineated in blue, has been another steadfast ally for the stock. This price point, which has maintained its relevance since late 2022, has oscillated between acting as a resistant ceiling and a supporting floor. While there have been instances of the stock breaching this level, more often than not, PepsiCo finds a safety net here, bouncing back with commendable ease.

The third guardian angel for the stock, if you will, is the flag formation’s lower boundary. Marked in a discernible red, this too has aided PepsiCo in its recent bounce. The confluence of these three supports forms a formidable defense against bearish onslaughts.

For investors and traders alike, these supports should be the key areas of focus. As it stands, remaining above this triad of levels puts the wind in the sails of the bulls. However, the optimism isn’t unbridled. A breach below the blue and green support structures could prompt a recalibration of the stock’s outlook. For now, though, PepsiCo’s bounce paints a promising landscape, signaling that the beverage giant might just be gearing up to quench its investors’ thirst for gains.