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PepsiCo Stock Price At Risk of Another Slide – Here’s Why

Key Highlights

  • Pepsi (PepsiCo) stock price failed to surpass $175 and started a fresh decline.
  • It traded below a key bullish trend line with support at $167.50 on the daily chart.
  • A clear move below $165 might spark sharp bearish moves.
  • PepsiCo’s net revenues were up 6.7% in the third quarter and 8.9% Year-to-Date 2023.

 

PepsiCo Price Analysis

After a strong decline in Sep 2023, PepsiCo (NASDAQ: PEP) found support near the $155 level. A base was formed, and the price started a recovery wave above the $160 level.

In October 2023, the company published its earnings report for Q3 2023. Its net revenues were up 6.7% in the third quarter and 8.9% Year-to-Date 2023. Besides, Organic revenue growth was up 8.8% and 11.8% respectively.

Looking at the daily chart of PepsiCo stock, there was a decent move above the $165 level. The price even climbed above the 38.2% Fib retracement level of the downward move from the $192 swing high to the $155 low.

However, the bears appeared near the $175 resistance. They protected the 50% Fib retracement level of the downward move from the $192 swing high to the $155 low.

As a result, there was a fresh bearish reaction below the $170 level. Pepsi’s stock price traded below a key bullish trend line with support at $167.50 on the same chart.

Immediate support is $164. The next major support is near the $160 level, below which the price could drop toward $158. Any more losses might send the price toward the $155 level.

On the upside, the price is facing a major hurdle near the $170 zone. The main resistance sits at $175. A close above the $175 resistance zone could set the pace for a decent recovery wave.  

The next key resistance is near the $182 level. Any more gains could open the doors for a wave toward the $192 pivot zone in the coming weeks.

Economic Releases

  • US GDP for Q4 2023 - Forecast 2%, versus 2% previous.
  • US Initial Jobless Claims - Forecast 200K, versus 187K previous.