PEP pushes through key technical resistance level
PepsiCo Inc. (PEP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
PEP finished Thursday at 120.26 gaining $7.76 (6.9%), strongly outperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 116.36, the market confirmed its breakout through the previous session high after trading up to $5.44 above it intraday.
Daily Candlestick Chart (PEP as at Mar 26, 2020):
Thursday's trading range has been $9.22 (8.18%), that's slightly above the last trading month's daily average range of $8.31. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for PEP.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 113.59 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, PEP actually lost -1.18% on the following trading day. Prices are trading close to the key technical resistance level at 127.59 (R1).
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for PepsiCo. Out of 268 times, PEP closed higher 54.10% 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 58.21% with an average market move of 0.25%.