PepsiCo (PEP) keeps bubbling along higher and higher. How do the charts look with their latest advance? Let's pay a visit.
In this daily bar chart of PEP, below, we can see share prices have rallied nicely the past 12 months. During the fourth quarter of 2018, when the broad market slumped, PEP held up better, with only a decline in December.
Prices have resumed their advance over the past four months, with a bullish 50-day moving average line and a rising 200-day line.
The daily On-Balance-Volume (OBV) line has moved up to a new high since the middle of March to confirm the new price highs.
The trend-following Moving Average Convergence Divergence (MACD) oscillator gave a cover shorts buy signal in January and an outright go long signal in February.
In this weekly bar chart of PEP, below, we can see that prices finally broke out to new highs in late March after more than a two year consolidation pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line turned up from March 2018 and confirms the bullish price action with its own new high.
The weekly MACD oscillator is above the zero line and pointed higher - another bullish signal.
In this point and figure chart of PEP, below, we can see an upside breakout at $121.25. A longer-term upside price target of $176.88 is shown and could be reached in the months ahead.
Bottom line strategy: Any near-term sideways price action for PEP is likely to be a buying opportunity for new longs or investors looking to increase their position.
Risk below $120 for now, with the $175 area our next big price target.