Beverage and snack foods giant PepsiCo (PEP) reported an earnings and revenue beat for the fourth quarter Thursday morning and told investors they were getting a bigger dividend in their brokerage accounts. PepsiCo also said it would be buying back more shares. Sounds like great news, but let's check out the charts.
In this daily bar chart of PEP, below, we can see that prices have advanced the past 12 months with a few corrections and pullbacks along the way. Prices have been testing the rising 50-day moving average line recently but are nicely above the rising 200-day moving average line, which intersects around $158 or so. The On-Balance-Volume (OBV) line shows a rise into the middle of January followed by a decline into February, suggesting a shift toward aggressive selling. The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in early January and has weakened toward the zero line, telling us that the trend strength is fading.