Intraday and swing scenarios based on price action and volume profile.
PEPSICO stock: going steady
2020-07-07 • Updated
The long-term picture is pretty clear for the Pepsi stock. Over the 10-year run, it has been consistently increasing in value. It left 2010 with $60 per share and reached its all-time high at the very beginning of 2020. There were turbulent periods, especially in 2019. However, nothing seemed to be able to kick this stock out of its steady upward-looking trajectory. Even the current crisis. A fierce fluctuation of unseen magnitude is visible at the end of the channel, however, it still doesn’t move away from the main course. Hence, we can take that as a fundamental reassurance that this stock is a strong and resilient one, and for a long-term investor, it should be a good option. Let’s move to shorter perspectives now.
In the mid-term horizon, we are likely to see the price keep going down until it reaches the area of $125 per share. That is where it will probably bounce upwards and go bullish again. Why necessarily so? Because the stock market is nothing different from the rest of the world: after a sudden hit, there is a phase of shock, then a response to the hit, and then a recovery. Currently, we are still in the response phase – that is, a gradual deterioration with relatively large bearish and bullish moves on the way downwards. This phase is natural, logical, and quite expected. In the end, sales of Pepsi should have dropped because sales everywhere (or, almost everywhere) dropped. However, is there is a reason to think that this drop will be protracted over a longer period? Not really. At least, not because of the crisis. People order food out, people start dining in, and in both scenarios, Pepsi is there. Watch for their earnings report in the second quarter – it is coming this Thursday, July 9, at 13:00 MT time. It will largely define the immediate continuation of the curve in the coming weeks.
Corrective Bearish Scenario: Sells below 38680 with TP1: 38560, TP2: 38500, TP3: 38432 Continuation Bullish Scenario: Buys above 38816 with TP: 39000
Bullish Scenario: Buy between 17515 and 17600 with TP1: 17681; TP2: 17720 intraday, and TP3: 17750 / 18000 in extension. Bearish Scenario in case of breaking the buying zone: Sell below 17500 with TP1: 17469; TP2: 17421, and TP3: 17358 in extension.
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In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...
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