PEP runs into sellers around 134.43 for the third day in a row
PepsiCo Inc. (PEP) Technical Analysis Report for Jul 12, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, PEP ended the week 0.2% higher at 133.28 after losing $1.07 (-0.8%) today, strongly underperforming the Nasdaq 100 (0.59%). Closing below Thursday's low at 133.35, the share confirmed its breakout through the previous session low after trading up to $0.74 below it intraday.
Daily Candlestick Chart (PEP as at Jul 12, 2019):
Friday's trading range has been $1.82 (1.36%), that's above the last trading month's daily average range of $1.55. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for PEP.
After trading as low as 132.61 during the day, the market found support at the 20-day moving average at 132.95. Prices are trading close to the key technical resistance level at 134.44 (R1). PepsiCo ran into sellers again today around 134.43 for the third trading day in a row after having found sellers at 134.74 in the prior session and at 134.46 two days ago. The last time this happened on Tuesday, PEP actually gained 2.03% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 134.74 where further buy stops might get triggered. With prices trading close to this year's high at 135.24, upside momentum could speed up should the stock be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for PepsiCo. Out of 353 times, PEP closed higher 53.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 62.32% with an average market move of 0.63%.