During Friday's Mad Money program Jim Cramer told his viewers his game plan for this week. On Monday, Cramer said he will be watching for updates on the COVID delta variant and the latest tensions with China, either of which could send the markets lower.
On Tuesday, we'll be met with the latest Consumer Price Index, which Cramer expects will reignite those worried about inflation. We'll also get earnings from PepsiCo (PEP) , JPMorgan Chase (JPM) and Goldman Sachs (GS) .
Let's check out the charts of PEP. In our last review of PEP on April 30 we wrote that "PEP has not broken out above its December highs but I think it just a matter of time. Traders could approach PEP from the long side risking to $138. Add to longs above $148. The $182 area is our initial price target."
In the updated daily bar chart of PEP, below, we can see that the shares have worked higher since the end of April. Prices are trading above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has broken out to a new high to confirm and support the price gains on PEP. The Moving Average Convergence Divergence (MACD) oscillator just turned upwards for a fresh outright go long signal.
In the weekly Japanese candlestick chart of PEP, below, we see a bullish setup. If we ignore the early 2020 decline and step back from the screen, we see a large sideways consolidation pattern in the $130 to $150 area. Prices are breaking on the upside of this pattern and we should see gains at least equal to the height of the pattern or to around $170 for starters. The slope of the 40-week moving average line is positive.
The weekly OBV line is bullish and the MACD oscillator too.
In this daily Point and Figure chart of PEP, below, we can see a potential upside price target of $176.
In this weekly close-only Point and Figure chart of PEP, below, we can see a $194 price target.
Bottom-line strategy: First, raise stops to $141 from $138. Traders could add to long positions if they wish. Our price targets are $176 and then $194.