Why you should book profits on PepsiCo now


On Wednesday June 16, it traded at a historic intraday high of $ 149.27. This was a test of his weekly risk level at $ 149.26. After hitting that high, the stock closed below its June 15 low of $ 148.07. This is called a daily key reversal.

Another reason for posting profit comes from its weekly chart. Pepsi has a positive but overbought weekly chart with its weekly slow stochastic reading above 90.00 like a parabolic bubble inflating.

PepsiCo is a diverse food and beverage company. It merged with Frito-Lay in 1965, bought Tropicana Products in 1998 and Quaker Oats in 2001, which included the Gatorade brand for athletes. The coronavirus buy helped push the stock up to this week’s high as consumers shopped for basic consumer goods. This demand has diminished as the economy reopens.

PepsiCo’s daily chart:

Courtesy of Refinitiv XENITH

So far in 2021, PepsiCo has registered a correction of 13.7%, from a high of $ 148.77 on December 29 to $ 128.32 on March 4. From that low, the stock rose 16.3% to its intraday high of $ 149.27 set on June 16. high was a test of this week’s risky level at $ 149.26.

Note that June 16 was a key turning point day. After setting the high, the stock closed below its June 15 low of $ 148.07.

The horizontal line at the top of the graph is the quarterly risk level at $ 150.13. The monthly value level for June is $ 144.30. Movement below this level indicates risk for the 200-day simple moving average at $ 140.84 and its semi-annual value level at $ 140.06.

PepsiCo’s weekly chart:

Courtesy of Refinitiv XENITH

PepsiCo’s weekly chart is positive but overbought. The stock is above its modified five-week moving average at $ 146.05 with its weekly 12x3x3 slow stochastic reading at 89.90, falling below the 90.00 level. When it was above 90 last week it was a formation of swelling parabolic bubbles.

A weekly close below the five week MMA with a stochastic reading falling below 80.00, the weekly chart will turn negative.