Stock of the day: PepsiCo
05 December 2024
PepsiCo is presenting an intriguing setup for long-term investors on the weekly charts. The focus is on the $156 support level, marked with a blue rectangle, which has proven its strength multiple times since 2022. This level was recently tested, and the price rebounded, hinting at potential bullish momentum.
Key Technical Observations
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Strong Support at $156: This level has consistently acted as a reliable foundation, with multiple bounces in the past, including one just three weeks ago.
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General Sentiment Positive: Despite this week’s lackluster performance, the broader market sentiment remains optimistic, increasing the likelihood of another upward push.
Bullish and Bearish Scenarios
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Bullish Outlook: As long as the price stays above the blue support zone, sentiment remains positive, with the potential target being the blue downtrend line, which represents a key resistance level.
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Bearish Risk: A weekly close below the $156 support would invalidate the bullish case, signaling a potential sell-off and a more cautious outlook for long-term investors.
Investor’s Take
Pepsi’s historical resilience at $156 makes it a compelling case for bulls, especially in a generally positive market environment. Traders and investors should keep an eye on how the week unfolds to confirm the direction.