Stock of the day: PepsiCo

PepsiCo is presenting an intriguing setup for long-term investors on the weekly charts. The focus is on the $156 support level, marked with a blue rectangle, which has proven its strength multiple times since 2022. This level was recently tested, and the price rebounded, hinting at potential bullish momentum.

Key Technical Observations

• Strong Support at $156: This level has consistently acted as a reliable foundation, with multiple bounces in the past, including one just three weeks ago.
• General Sentiment Positive: Despite this week’s lackluster performance, the broader market sentiment remains optimistic, increasing the likelihood of another upward push.

Bullish and Bearish Scenarios

• Bullish Outlook: As long as the price stays above the blue support zone, sentiment remains positive, with the potential target being the blue downtrend line, which represents a key resistance level.
• Bearish Risk: A weekly close below the $156 support would invalidate the bullish case, signaling a potential sell-off and a more cautious outlook for long-term investors.

Investor’s Take

Pepsi’s historical resilience at $156 makes it a compelling case for bulls, especially in a generally positive market environment. Traders and investors should keep an eye on how the week unfolds to confirm the direction.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-pepsico-3