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.
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.
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.
For more information, please visit: FXTM
Disclaimer: This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 81% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.