Trading Idea - Entry Levels for PepsiCo

Published on Monday, 30 January 2012 19:12 Written by Danny Miller

New York, January 30th (TradersHuddle.com) - Shares of PepsiCo, Inc. (NYSE:PEP) ended close to calculated support at $62.25 with current price action placing the stock near levels that will raise attention of traders looking for an entry point.

PepsiCo's current stock range is defined by current calculated support defined at $62.25 and by the resistance level at $65.40, which could be used as a reference by traders planning their trades. The area defined as calculated support, is where buying might materialize, which could provide a lift to shares of PepsiCo, Inc.. However, this area if breached will signal participants that the stock failed to entice buyers to step in and support the stock.

Traders wanting to establish a position should pay close attention to PepsiCo's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $65.40 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.

Shares of PepsiCo, Inc. closed at $65.41 in the previous trading session.

PepsiCo, Inc. (NYSE:PEP) operates worldwide beverage, snack and food businesses. The Company manufacture or uses contract manufacturers, market and sell a variety of grain-based snacks, carbonated and non-carbonated beverages. Some of the products offered are Cheetos, Tostitos tortilla chips, Ruffles potato chips, SunChips multigrain snacks. The beverages unit sells beverage concentrates, fountain syrups, and finished goods under the Pepsi, Mountain Dew, Gatorade, 7UP, and Sierra Mist names among others.