The Bears Have Taken Over The Reins Of PepsiCo

by at FXTM.
Tran Dai Phat
Tran Dai Phat

The PepsiCo stock (NASDAQ: PEP) on the Daily Chart has been in a downtrend since 29 December 2020 when it registered the high price at $148.74, followed by a series of lower tops and lower bottoms.

On 4 March 2021, PEP recorded the low price of $128.32.

Analysing Indicators

When applying Oscillator Analysis to the price chart, one can see that price is trading below the SMA 60 period Moving Average line, a fact which confirms PEP’s downward momentum.

Furthermore, the Moving Average/Convergence Divergence (MACD) Oscillator is recording values below the zero line which hints to the bearish bias of PepsiCo.

Additionally, the Relative Strength Index (RSI) Oscillator registers values below the fifty line which indicates bearish sentiment.

All three technical indicators are in agreement with regards to the downward bias of the stock.

Fibonacci

Three price targets may be calculated upon applying the Fibonacci tool to the price chart.

  • The first price target is estimated at $132.14 (161.8%).
  • The second price target is seen at $125.98 (261.8%).
  • The third price target is projected at $116.02 (423.6%).

While the first target has already been breached, PEP is currently trading below the downtrend line. Of course, supply and demand as well as the crowd sentiment will determine the future course of the PEP.

Though the market is currently following a counter trend direction, this might just be a temporary correction, as long-term sentiment remains bearish.

Pepsico Daily

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