Can PepsiCo Inc. Stock Attract More Buying Interest Soon?

PepsiCo Inc. (NASDAQ: PEP) is well-known across the globe for the brands, which it owns. Pepsi, Lay’s, Mountain Dew and Quaker Oats are among the few, which are recognized everywhere. In 2021, the company delivered around $79.5 bln in net revenue. PepsiCo Inc. is expecting to have another successful year in 2022, however, due to certain geopolitical tensions, higher inflation and some supply chain disruptions, the company might not see as strong returns as in last year. Nevertheless, PepsiCo Inc. is trying present themselves as a stable dividend payer, what may attract more investors, when the times become more difficult in the market.

The technical picture of the PepsiCo Inc. stock on our 4-hour chart shows that the share price is climbing higher, while trading above a short-term tentative upside support line taken from the low of March 11^th. At the end of last week, the stock broke a short-term downside resistance line taken from the high of February 3^rd. Such a move might have attracted more buyers into the field, meaning that further advances are possible. However, we would prefer to wait for a break above the 163.79 barrier first, which is yesterday’s high, before aiming further north.

A break above that 163.79 barrier would confirm a forthcoming higher high, possibly clearing the way towards the 166.50 zone, marked by the current highest point of March, where a temporary hold-up could happen. If the buying doesn’t stop there, the next potential target might be the high of February 23^rd, at 168.93, or the 170.30 level. That level marks the high of February 11^th.

The RSI and the MACD are pointing slightly to the upside. In addition to that, the RSI remains above 50 and the MACD is still balancing above zero and the signal line. The two indicators show positive price momentum, which supports the scenario discussed above.

Alternatively, a drop below all of the aforementioned trendlines and then a break below the 160.06 hurdle, marked by the low of March 18^th, could scare off some buyers from the arena for a while. PEP may fall to the 157.03 obstacle, a break of which might open the door for a move towards the 153.68 zone, which is the low of March 11^th. Slightly below it lies the 153.39 area, marked by the current lowest point of March, which may get tested as well.

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