PEP closes within previous day's range after lackluster session
PepsiCo Inc. (PEP) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
PEP finished the week -4.02% lower at 130.48 after gaining $0.27 (0.21%) today, slightly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (PEP as at May 22, 2020):
Friday's trading range has been $1.45 (1.12%), that's far below the last trading month's daily average range of $2.72. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PEP.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on April 8th, PEP gained 0.77% on the following trading day.
Prices are trading close to the key technical support level at 130.03 (S1).
PepsiCo shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for PepsiCo. Out of 85 times, PEP closed higher 54.12% 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 56.47% with an average market move of 0.52%.