Will the Pepsico Stock Break The Support Level of $173?

• The Pepsico revenue has been rising since 2017.
• The PEP stock is trading below the 50-day and 100-day Exponential Moving Averages.
• This stock has surged only 4.08% in a year.

Market capital of Pepsico   – $241.273 Billion

The Current Market Price of Pepsico – $175.27

The PEP Stock Summary

On 22 September, the price declined by $0.11 with a fall of 0.06% in a day. The price has slumped over 3% in a week and over 1% in a month. It indicates that the trend of the stock is in the downward direction. However, the price of the stock has surged by over 4% in a year, which shows the price has been trading in the same range. 

The company’s reveue has been rising since 2017. In 2016, the revenue of the company was $62.80 Billion. It stands at $86.40 Billion in the 2022 financial report of the company. A rise of over 37% in the last 6 years occurred, which is imposing. If we consider the net income, it has been very unsteady over the years. The net income has risen from $6.31 Billion to $12.52 Billion between 2016 and 2018. It started declining after 2018 and the company’s net income decreased to $8.91 billion in the last 4 years.

The net debt of the company has been rising and is currently standing at $36.14 Billion. However, the net debt of the company is in the same range for the 3 years. The net margin of the company for the current period is 12.31% up from 10.31% which is a good sign for the company.

Technical Analysis of the Pepsico Stock

The price of the stock is forming a lower high and lower low pattern which indicates that the price is in a downtrend.  The price of the stock is currently trading flat between the level of $181.26 and $173.57. Pepsico stock has tested the current support level of $173 twice and some buying is visible at the current time also.

The support level for the stock is currently present at $173.57, which is mentioned as support 1 on the chart. The second support level is present near the previous swing low of the stock at the $164.12 level. If we talk about the other resistance level, it is present near the price of $191.04.

The PEP stock price is trading below the 50-day and 100-day Exponential Moving Averages, which shows that the stock is bearish. Both the EMAs are present at the level of $179.91 and $180.61. The Relative Strength Index (RSI) is placed at 39.54, which indicates that the selling pressure is building up.

Conclusion

The price of the stock is trading very close to the crucial support level of $173.57. If the price breaks this level on the downside, it can unlock the way towards the level of $164. If the price breaks the resistance level of $181 then it can try to achieve the level of $191.

Technical Levels

Resistance – $181.26 and $191.04

Support – $173.57 and $164.12

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.