PEP stock price started the year with a bearish trend, falling from the high of $182.77 and forming a support near $169. During March, the price formed the support level at $170.50 and started a bullish rally and shattered the resistance level of $178. The bullish rally led to the formation of a high at $196.88.
The high triggered a drop and the price started to fall. PepsiCo stock price corrected the bullish rally and fell down to form a support at $179.50. The stock price did try to retest the highs but could not rise above $188.
After facing rejection from $188, the PEP stock price started to decline and is currently headed toward the recently formed support of $179.50. If the price reaches the support, it would cause a loss of roughly 2.22% in the price. On the other hand, if the price can break and close above the $188 level, there is a high probability for the price to head toward retesting and potentially rising above the all-time high of $196.88.
The current weekly candle has broken the lower wick of the previous candle which indicates rising bearish momentum and a chance of further decline. On a weekly basis, the price is in an uptrend, forming higher highs and higher lows. Stock price has started to rebound again and the channel suggests that rebound might continue until the price reaches the $178 level.
Upcoming Earning Results Of PepsiCo
The consensus has estimated the revenue to be $21.70 billion and the earnings per share to be $1.956. Investors might not know what Q2 revenue and EPS will look like but there is a high possibility of them being strong as snacks price remains elevated. If PepsiCo can retain its pricing power, the stock has real fighting powers against inflation, which is worth considering.
PepsiCo has also extended its sponsorship agreement with UEFA for three more years. As part of the extension, PepsiCo will make a $1 million investment into collaborative projects with UEFA foundation for children and environmental initiatives.
Will PEP Stock Price Retest All Time High?
The stock price has crossed the 20 and 50-day EMAs negatively indicating rising bearish momentum in the price. The chaikin money flow score is -0.15, suggesting weakness in the market. The relative strength index RSI) of PepsiCo is 45.36, implying that price is slowly gaining bearish momentum.
The stock price reached the upper band of bollinger and started to retrace. PEP stock price has crossed the 20-day SMA of bollinger and is headed toward the lower band which resides near $179 support.
Conclusion
The market structure and price action of PepsiCo has turned bearish after being bullish for more than two months. The earning results are soon to be released on July 13 and this move can effect a pullback and enable the price to rise further if earnings are positive.
Technical levels
Major support: $175 and $179.50
Major resistance: $188 and $196.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/29/pepsico-inc-pep-stock-price-retraces-before-q2-earning-result/