PEP breaks back below 20-day moving average
PepsiCo Inc. (PEP) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
PEP ended the month -0.56% lower at 131.55 after losing $0.74 (-0.56%) today, notably underperforming the Nasdaq 100 (1.47%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (PEP as at May 29, 2020):
Friday's trading range has been $1.90 (1.44%), that's below the last trading month's daily average range of $2.63. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for PEP.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 130.03 (S1). PepsiCo closed back below the 20-day moving average at 132.11. After having been unable to move lower than 130.11 in the prior session, the share found buyers again around the same price level today at 130.34. The last time this happened on Tuesday, PEP gained 0.82% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 132.73 where further buy stops could get activated. Selling might speed up should prices move below the close-by swing low at 128.58 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for PepsiCo. Out of 588 times, PEP closed higher 54.08% 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 59.52% with an average market move of 0.45%.