Candlesticks - Bearish Engulfing PepsiCo
New York, January 12th (TradersHuddle.com) - Shares of PepsiCo (NYSE: PEP) ended the trading session lower by 0.6% following a report in the Wall Street Journal that the company's Tropicana unit didn't report fungicide in juice to the FDA. The stock extended its prior session decline, in which UBS cut its rating to a Neutral.
PepsiCo's price action formed what is considered to be a bearish engulfing candlestick chart pattern. The current stock range is defined by calculated support defined at $62.25 and by the resistance level at $65.40, which should be used by traders planning their moves.
Traders wanting to establish a position in PepsiCo or that are already holding the stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current price action. The Bearish engulfing pattern is a leading warning sign for a trend reversal to occur.
PepsiCo, Inc. (NYSE: PEP) operates worldwide beverage, snack and food businesses. The Company manufactures or uses contract manufacturers, markets 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.
