PEP breaks above 100-day moving average for the first time since June 10th
PepsiCo Inc. (PEP) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, PEP ended the month 0.54% higher at 132.26 after gaining $1.18 (0.9%) today, notably underperforming the Nasdaq 100 (1.96%). Trading up to $0.98 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (PEP as at Jun 30, 2020):
Tuesday's trading range has been $1.97 (1.49%), that's below the last trading month's daily average range of $2.81. 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.
Two candlestick patterns are matching today's price action, the Bullish Spinning Top which is known as bullish pattern and one bearish pattern, the Bearish Hikkake Pattern.
The market managed to close above the 100-day moving average at 131.86 for the first time since June 10th. When this moving average was crossed above the last time on June 10th, PEP actually lost -4.69% on the following trading day.
Though 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.
As prices are trading close to June's high at 135.16, upside momentum might speed up should PepsiCo mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for PepsiCo. Out of 145 times, PEP closed higher 55.86% 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 54.48% with an average market move of 0.17%.