PEP finds buyers again around 142.45
PepsiCo Inc. (PEP) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
PEP finished the week 1.17% higher at 142.91 after losing $0.74 (-0.52%) today on low volume, but still slightly outperforming the Nasdaq 100 (-0.82%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (PEP as at Jan 24, 2020):
Friday's trading range has been $1.68 (1.17%), that's slightly above the last trading month's daily average range of $1.52. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for PEP.
Notwithstanding a strong opening the share closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 142.37 in the prior session, PepsiCo found buyers again around the same price level today at 142.45. The last time this happened on January 10th, PEP gained 1.49% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 137.93.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for PepsiCo. Out of 78 times, PEP closed higher 60.26% 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 64.10% with an average market move of 0.55%.