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Asset Watch
Tuesday June 18, 2024
The stock is down by nearly 17% from its May 2023 highs, and key support levels have entered the picture. PepsiCo’s 200-week moving average (the blue line) has been an important long-term trend indicator. After false breakdowns in 2018, it continued to climb higher. Similarly, an intraweek breakdown was bought in late 2023 and higher prices followed.
As PepsiCo closed slightly below its 200-week MA last week, the price action in the days ahead will be key. If the stock voids the breakdown and rallies back above the 200-week MA, it could provide the bulls with some short-term momentum.
If not, price support is present in the $160 area, as it’s near the August 2021 highs and the October 2022 and 2023 (closing) lows. Consequently, the zone could be an additional anchor to help PepsiCo make a comeback.
So, will defensive names like PepsiCo outperform over the next two weeks, or should you continue to ride Big Tech’s momentum?
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