Based on good technical signals, PEPSICO INC is potentially setting up for a breakout.

Our stockscreener has identified a possible breakout setup on PEPSICO INC (NASDAQ:PEP). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:PEP for potential opportunities.

What is the technical picture of NASDAQ:PEP telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, PEP scores 8 out of 10 in our technical rating. Although PEP is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• PEP is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so PEP is performing more or less in line with the market.
• When compared to the yearly performance of all other stocks, PEP outperforms 43% of them, which is more or less in line with the market.
• PEP is part of the Beverages industry. There are 32 other stocks in this industry, PEP did better than 67% of them.
• In the last month PEP has a been trading in a tight range between 170.22 and 179.73.

For an up to date full technical analysis you can check the technical report of PEP

How does the Setup look for NASDAQ:PEP

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:PEP currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, PEP also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 177.72, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

How to trade NASDAQ:PEP?

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.