We looked at PepsiCo. last summer and identified the monthly chart symmetrical triangle. Technical semantics aside, the price range had narrowed for the past five years and a day of reckoning was likely imminent. Since then, we witnessed a breakout and subsequent “throwback,” or retest to the primary breakout level just above $70.
In that prior blog post I had noted $72.50 was the level I really wanted to see cleared in order to gain confidence of a long-term breakout in the soft drink giant. As you can see below, last week’s action finished at $72.49. Nonetheless, barring a huge sell-off the monthly candle likely to complete below by the end of this coming week is bullish. Triangles could easily morph into larger patterns, and often do, but further strength next week puts bulls in the driver’s seat for that long-term breakout for Coca-Cola’s little brother.
Earnings are scheduled for 02/14.