Stock of the Day: PepsiCo

In today’s stock of the day, I would like to highlight PepsiCo, which remains in a strong, well-defined long-term downtrend. The trend is very technical, characterized by a series of short corrections followed by decisive bearish continuations. Each consolidation pattern — including a flag and then a pennant, both marked with black lines — has resulted in a breakout to the downside, reinforcing the prevailing bearish sentiment.

Most recently, PepsiCo has formed a rectangle pattern marked with blue boundaries. The price just tested the lower edge of the rectangle, suggesting a short-term bounce might be underway toward the upper boundary. However, as long as the price remains inside this rectangle, trading opportunities remain limited. A clear breakout is needed to activate a new directional signal.

A breakout to the upside would be a bullish development and could open the door for a rebound. Conversely, a breakout to the downside would confirm continuation of the bearish trend and trigger a fresh signal to sell.

For now, patience is key — traders should wait for the rectangle pattern to resolve before taking action.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-pepsico-5