PepsiCo: Strong ReactionThe Pepsi stock recently showed a strong reaction to the support at $141.52, reinforcing the significance of this level. However, we primarily anticipate that this level will be breached next. During the ongoing magenta wave (5), the price should drop into our beige Target Zone (coordinates: $131.12 – $124.50), which presents potential long-entry opportunities. We primarily expect the beige wave a to conclude within this Zone. But if the stock instead breaks above the resistance at $165.13 (probability: 31%), this will confirm that the low of the beige wave alt.a was settled prematurely.
Pepsicotrading
PepsiCo (PEP) Shares Drop 4.5% After Earnings ReportPepsiCo (PEP) Shares Drop 4.5% After Earnings Report
Yesterday, PepsiCo Inc. (PEP) released its investor report, which delivered mixed results.
Positive highlights:
→ Earnings per share ($1.96) exceeded expectations ($1.94).
→ Gatorade strengthened its market position.
→ Mountain Dew Baja Blast generated $1 billion in annual revenue.
→ International revenue grew by 2.1%.
→ The company announced a 5% dividend increase and expects growth in the protein drinks segment in 2025.
Negative factors:
→ Revenue ($27.78 billion) fell short of forecasts ($27.9 billion).
→ North American sales are declining, with Quaker Foods sales down 6%.
→ Foreign exchange fluctuations are weighing on overall revenue.
Investors reacted negatively, and by the end of the trading session, PepsiCo's stock price dropped by 4.5%.
Technical Analysis of PEP Stock
→ The price remains in a downward channel. While the S&P 500 has gained over 2% since the start of 2025, PEP stock has declined by more than 6%.
→ The $150 psychological level no longer acts as support (which was evident before the earnings release). The recent price rebound (marked with blue arrows) appears to be an interim recovery within the ongoing downtrend.
→ The stock is now trading near the median line of the channel, suggesting a potential stabilisation as supply and demand tend to balance at the median. However, bearish pressure may persist, potentially leading to a new yearly low.
Is PEP Stock a Buy?
Analysts remain cautiously optimistic. According to TipRanks:
→ Only 5 out of 11 analysts recommend buying PEP.
→ The 12-month average price target is $168.
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PepsiCo _ Next Target is Triangle Pattern TopPepsiCo is forming a Triangle Pattern. The Next Target is the Top of the Triangle. If it doesn't Breakout above the Triangle Pattern (or) Resistance, the market is Expected to move downward again, anticipating a breakout at the bottom of the triangle. If there is a breakout at the bottom of the triangle, the market Expects a 27% fall. Because PepsiCo has been trading within two parallel lines, or a channel, since 2009. Therefore, if it breakout on the bottom side of the triangle pattern, the market could fall to at least the 0.3 Fibonacci Retracement level. Refer to this below image :
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PEPSICO: Are you willing to take that risk on the 1W MA200?PEPSICO took a strong fundamental blow yesterday, reaching remarkably oversold technical levels on the 1W timeframe (RSI = 19.097, MACD = -4.010, ADX = 44.557). On today's opening it hit the 1W MA200 for the first time since the March 2020 COVID crash. If it weren't for that crash, PEP would have never broken the long term Channel Up and today's candle would be exactly on its HL bottom.
Under the current circumstances it looks like a big risk but every time the stock crossed under the 1W MA200 and the 1W RSI got oversold (under 30.000), it was the buy opportunity of a Cycle. Those two bottoms instantly rebounded to the 0.786 Fibonacci level, so that sets a target for us at 187.00.
Are you willing to take that risk?
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