Asset Watch
Tuesday, February 14, 2023
Then the technical backdrop is constructive. The upward slowing grey line shows PepsiCo has bounced off monthly support, and prior iterations resulted in solid rallies.
Additionally, PepsiCo closed above its 200-day moving average on Feb. 10, and the last five times this occurred, four major rallies followed, while one trough-to-peak rally of 7.6% was present in May.
If history is any indication, more upside should be on the horizon. PepsiCo is also a great mean-reversion play when considering the YTD underperformance.
So, does the stock have all the ingredients for another upswing, or will the CPI sour the mood on Wall Street?