Earnings Play: PepsiCo

On Monday PepsiCo is expected to release 2Q earnings.

Downtrend 2

On Monday, before market, PepsiCo (PEP) is expected to report second quarter EPS of $1.25 compared to $1.54 a year ago on revenue of approximately $15.4B vs. $16.4B last year. PepsiCo is an international beverage and food company, and on July 7th, the company announced that it selected Segun Agbaje as an independent member of the Board and Audit Committee effective as of July 15th. Segun is currently a Managing Director and Chief Executive Officer of a Nigerian multinational financial institution called Guaranty Trust Bank.  

From a technical point of view, on a daily chart, PepsiCo's stock price has been consolidating in a range between $126.50 and $138.50 since early-April. The moving averages (MA) are set-up in a bearish manner, the 20-day MA is below the 50-day MA and the 50-day MA is below the 200-day MA. The RSI appears to have peaked back in mid-April at about 59 when price reached the high of the range at $138.50. The RSI has since held below the 59 level with choppy movement and is currently sitting just above 50. Price has not risen above the 200-day MA since mid-May. Price is likely to continue to bounce around in the range, holding below the 200-day MA before breaking below the $126.50 support level, which would clear a path for price to fall to the $122.00 support level. If price manages to break above the 200-day MA we could witness price jump upwards to the $138.50 level. If price can break above the first resistance level, we could see an attempt to test the $144.00 level.        

Source: GAIN Capital, TradingView

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