Pepsi stock tumbles after reaching a multi-month high.
Pepsi stock price recorded a stunning rally on Monday towards a multi-month high of 123.95, though it returned its gains a day after.
The momentum indicators are supportive of the bearish move, with the RSI falling into negative territory below 70 and approaching the 50 neutral mark, while the MACD sank below its trigger line in the positive territory.
Immediate support is being provided by the 120.75 level, taken from the latest lows. Should prices dip lower again, the next support would likely come from the 50-day simple moving average, which currently stand near 117.83 and the 23.6% Fibonacci retracement level of the up leg from 95.90 to 123.95, near 117.37.
In case of an upward attempt, the stock price would likely meet resistance at the previous peak of 123.95, before heading towards the next psychological levels of 124.00 and 125.00.
In the medium term, the bullish outlook remains intact, with the moving averages all pointing upwards and the price has been holding in an uptrend line since May 2018.
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