PepsiCo Breaking Out?

Published on Thursday, 29 July 2010 05:24 Written by TradersHuddle Staff

New York, July 29th (TradersHuddle.com) - Shares of PepsiCo, Inc. (NYSE:PEP) closed the trading session at $65.69 just above calculated resistance at $64.98 effectively breaking out, grabbing the attention of momentum traders, which could eventually push the stock to different trading range

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.

PepsiCo's stock was trading in a well defined range with support at $60.32 and resistance at $64.98, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that PepsiCo's stock is still near the broken resistance level, traders will be focusing on $64.98 to see if the stock holds the breakout without rolling over.