Technical Analysis – PepsiCo stock hovers above MAs, modestly bullish in short-term

Marios Hadjikyriacos, XM Investment Research Desk

PepsiCo’s stock has been on an upward trajectory in recent months, recovering some of the losses it posted in late 2018. Recent price structure consists of higher lows, while the market is also trading above both its 50- and 200-day simple moving averages (SMAs), which keeps the medium-term outlook modestly positive. For the picture to shift to decisively positive, though, a new high above 121.80 is needed.

Momentum oscillators paint a somewhat bullish picture as well, as the RSI is above 50 and pointing up, while the MACD hovers above its red trigger line.

In case of another wave of advances, immediate resistance may be met near 114.75, which halted the rally on February 13. An upside break could open the door for a test of 118.90, the December 13 peak.

On the flipside, a pullback in the stock may encounter support near the crossroads of the 112.0 zone and the 50-day SMA, currently at 111.71. A bearish violation would turn the bias to neutral, and could see sellers challenge the 110.80 area, which capped several advances in January.

In summary, a clear break above 121.80 is required for the picture to shift to clearly bullish, while a move back below 112.0 and the 50-day SMA would suggest a more neutral outlook.