Our stock screener has spotted PEPSICO INC (NASDAQ:PEP) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NASDAQ:PEP.
Technical Analysis Observations
ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.
Overall PEP gets a technical rating of 9 out of 10. Both in the recent history as in the last year, PEP has proven to be a steady performer, scoring decent points in every aspect analyzed.
- Both the short term and long term trends are positive. This is a very positive sign.
- Looking at the yearly performance, PEP did better than 86% of all other stocks.
- PEP is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so PEP slightly outperforms the market at the moment.
- In the last month PEP has a been trading in the 174.23 - 184.96 range, which is quite wide. It is currently trading near the high of this range.
- PEP is part of the Beverages industry. There are 38 other stocks in this industry, PEP did better than 63% of them.
Looking at the Setup
Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:PEP currently has a 8 as setup rating:
PEP has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 185.7. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 183.12, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.
How to trade NASDAQ:PEP?
A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed 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.
Every day, new breakout setups can be found on ChartMill in our Breakout analyzer.