Does $PEP Have all the right ingredients for a breakout? (Dec. 30, 2019)
This is Scott with your Free Chart of the Day. I want to take a look at PepsiCo ( NASDAQ: PEP ). Pepsi ( NASDAQ: PEP ) just might have all the right ingredients to help push the market higher. As you can see for the last couple of months here Pepsi ( NASDAQ: PEP ) has really just kind of been going sideways, building a nice high base of consolidation. We have this rising 200-day moving average and this flattening out 50-day moving average, that’s the red line here.
Now, I don’t think this stock is ready for prime time just yet, but I will say I think it is worth having an alert. And taking a look at Pepsi ( NASDAQ: PEP ), if it breaks above this base of consolidation, that price level is 138.25. The fact that the market has been going higher and Pepsi ( NASDAQ: PEP ) has been going sideways tells us that if stocks like Pepsi ( NASDAQ: PEP ) move higher it could push the market higher with it.
What you are doing is, you are watching for a break of 138.25 and you are going to keep a stop just below the 50-day moving average giving yourself less than 3 percent of risk. Could this have all the ingredients for a breakout? We’ll have to watch and see.
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