PepsiCo, Inc.Short
Ichimoku Watch: Soft Support Seen Ahead of Earnings for Pepsi
Updated
Upcoming Earnings:
PepsiCo, Inc. (ticker: PEP) is scheduled to report earnings before the market opens on 11 July. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is $2.16. The reported EPS for the same quarter a year prior was $2.09.
Ichimoku Indicator Suggests Bearish Movement for the Stock
Since forming a top at $183.41 in mid-May, Pepsi has been strongly trading lower and is now showing early signs of a downtrend forming, according to price structure.
Support from $161.81 was tested in mid-June, but as you can see, it failed to generate much bullish excitement, topping out at $169.61 and is now on track to retest the noted support level.
According to the Ichimoku Indicator, the current support level is also vulnerable. A break lower could lead to a move to support at $159.00 and perhaps the October 2023 lows of $155.83. You will see that we now have a defined Ichimoku Cloud overhead between the Leading Span A (light green at $166.71) and the Leading Span B (light orange at $172.48). In addition to this, the Conversion Line (blue at $165.44) crossed below the Base line (red at $167.97), and the Lagging Span (dark green at $162.12) is also below price action, of which both are considered bearish signals.
Price Direction?
Current support depicts weakness ahead of this week’s earnings. As such, any rebound from the level could be recognised as a sell-on-rally theme, particularly if the area between the Conversion Line and the Base Line ($165.44-$167.97) or even the Ichimoku Cloud is tested. Ultimately, the next downside support target can be seen at $159.00.
PepsiCo, Inc. (ticker: PEP) is scheduled to report earnings before the market opens on 11 July. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is $2.16. The reported EPS for the same quarter a year prior was $2.09.
Ichimoku Indicator Suggests Bearish Movement for the Stock
Since forming a top at $183.41 in mid-May, Pepsi has been strongly trading lower and is now showing early signs of a downtrend forming, according to price structure.
Support from $161.81 was tested in mid-June, but as you can see, it failed to generate much bullish excitement, topping out at $169.61 and is now on track to retest the noted support level.
According to the Ichimoku Indicator, the current support level is also vulnerable. A break lower could lead to a move to support at $159.00 and perhaps the October 2023 lows of $155.83. You will see that we now have a defined Ichimoku Cloud overhead between the Leading Span A (light green at $166.71) and the Leading Span B (light orange at $172.48). In addition to this, the Conversion Line (blue at $165.44) crossed below the Base line (red at $167.97), and the Lagging Span (dark green at $162.12) is also below price action, of which both are considered bearish signals.
Price Direction?
Current support depicts weakness ahead of this week’s earnings. As such, any rebound from the level could be recognised as a sell-on-rally theme, particularly if the area between the Conversion Line and the Base Line ($165.44-$167.97) or even the Ichimoku Cloud is tested. Ultimately, the next downside support target can be seen at $159.00.
Note
The stock is currently being sold from the Ichimoku Cloud. The question is whether sellers have enough gas in the tank to push through support.
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