$PEP Part II - continuation and technical analysis:
PepsiCo is in the midst of a six-month uptrend.
During November, the stock attempted to break its peak around $166 unsuccessfully. After the failures, it dropped and was halted at the $158 support level and at the 50-day moving average (in blue) which has served as good support in the past.
In recent trading days, the stock has risen on high volume and is again facing resistance at $166.
Whether it succeeds or not will be determined by the following:
The resistors: $166 - the price that halted it over the past month + the top of the ascending channel around $170.
The supporters: the MACD indicator is curving upwards towards a moving average crossover (a 'bullish' signal) and the RSI indicator is in a reasonable buying zone and does not hinder the continuation of the trend.
Due to its position in the middle of a channel, there is a scenario where the stock will have to test the double support at $158 (an interesting location for adding).
I will choose to buy the stock when I see a daily close above $166, which will indicate a clear breakout.
Nothing stated herein is a recommendation, personal opinion only. Anyone using this information does so at their own discretion and personal responsibility only.