PepsiCo (NASDAQ: PEP), has been facing a challenging environment in the recent 2 years. With the continued uncertainty and volatility in the market, the stock’s long-term growth potential is under scrutiny by investors. In this article, we’ll analyze the various Elliott Wave patterns for PepsiCo in order to guide investors in navigating the mid-term movement of the stock.

PepsiCo surged into new all time highs on May 2023 but it didn’t last long. Since then PEP faced a 20% decline which ended the impulsive cycle started in March 2020.
Based on the current structure we can define 2 potential emerging type of correction taking place.

The initial aggressive approach would suggest a potential 5 waves decline in wave ‘a’ of larger ZigZag ‘abc’ structure. Currently a short term bounce in wave ((4))  would ideally fail around $167 – $170 area followed by a wave ((5)) lower into equal legs area $158 – $152. Up from there, a larger 3 waves bounce will happen in wave ‘b’ before another 5 waves decline in wave ‘c’ to take place.

PEP ZigZag Structure 10.26.2023

As we can notice on the daily chart, the decline from the peak is already showing 3 waves down  ((A)) ((B)) ((C)) which already reached equal legs area $158 – $152. If the move lower is already completed within wave ‘w’ then the reaction higher will correct that proposed cycle in wave ‘x’ before the stock turns lower again within a wave ‘y’ to form a corrective double three structure.

PEP Double Three Structure 10.26.2023

PEP will turn bullish if the rally from October 2023 low turns into a 5 waves impulsive structure suggesting that any pullback would ideally remain supported above $155.83 low. In that case, the stock will be looking to create separation from the low in the coming weeks to support the idea of an impulse.

PEP Impulsive Structure 10.12.2023

In conclusion, despite presenting 3 different scenarios, the market will soon define the main path as they share the same bounce from the extreme blue box area in the near term. Depending on the structure of the coming move, PEP will give the early hints of what’s coming for the stock as volatility is expected to remain for the rest of 2023.

 

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With a market capitalization of over $200 billion, PepsiCo (NASDAQ: PEP) is a global leader in the food and beverage industry. It has recently broken into new all-time highs, indicating a potentially bullish outlook for the stock. Despite ongoing market volatility and changing consumer preferences, the company’s strong revenue and profits suggest a solid business model with promising growth potential. With the stock’s recent surge, investors may want to consider the mid-term movement of the stock to take advantage of potential buying opportunities.

The recent surge in PEP’s price, surpassing the peak of December 2022, successfully erased the RSI divergence in the daily charts. This event is crucial, as it indicates that the cycle from March 2020 will continue and confirms that the wave (3) cycle from March 2022 is still in progress.

The rally from March 2022 low unfolded as a leading diagonal in wave (1) at $186.84, followed by a pullback in wave (2) ended at $167.05. Ideally, the move higher  in wave (3) should target the 100% Fibonacci extension area at $200.53, followed by a potential 3-wave pullback before resuming the rally. Additionally, the 123.6% – 161.8% Fibonacci extension levels, located at $208 – $221, may come into play at a later stage of the cycle.

In conclusion, PEP’s Elliott Wave patterns suggest that the stock is in a bullish sequence from March 2022 low, with the wave (3) in progress. Any pullbacks in 3, 7, or 11 swings should be seen as potential buying opportunities, as long as the stock remains supported above the wave (2) low of $167.05.

PEP Elliott Wave Daily Chart

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PepsiCo (NASDAQ: PEP), one of the largest food and beverage companies in the world, has been facing a challenging environment in the wake of ongoing market volatility. While the company’s revenue and profits have remained relatively stable, industry-wide pressures and changing consumer preferences have put significant pressure on PepsiCo’s business model. With the continued uncertainty and volatility in the market, investors are beginning to question the company’s long-term growth potential. This article aims to analyze the various Elliott Wave patterns for PepsiCo in order to guide investors in navigating the mid-term movement of the stock.

Examining PepsiCo’s weekly chart reveals a sideways overlapping price action since 2022, typically seen at the end of a trend, indicating a potential reversal within an ending diagonal structure. Our proprietary system confirms PepsiCo’s March 2020 low cycle ended after rallying in a 5-wave advance within wave ((1)), with a larger degree correction occurring within wave ((2)) before the stock can rally into new all-time highs.

PepsiCo (NASDAQ: PEP) Weekly Elliott Wave Chart ( 1st Scenario )

Wave (A) ended on February 3rd after a decline from its December 2022 peak of $186.84. Currently, PepsiCo is in wave (B) and may rise further towards the $180 – $183 equal legs area. After that, the stock is expected to trade lower in wave (C). It will end a zigzag structure in wave ((2)) potentially towards the $160 – $150 area then a turn higher takes place.

PepsiCo (NASDAQ: PEP) Weekly Elliott Wave Chart ( 2nd Scenario )

If PEP bounce fails to exceed the February peak of $178.23 and it breaks the March 1st low of $169.12, the more aggressive path can occur. This move will imply that wave (B) has concluded and that the stock is going lower within wave (C) towards the $158 – $145 equal legs area. Once there, the stock is expected to respond positively and look to resume the bullish trend or at least rebound in larger 3 waves higher.

In conclusion, the analysis of the Elliott Wave patterns suggests that PepsiCo (NASDAQ: PEP) will face headwinds in the short to mid-term as the stock corrects within wave ((2)). Although the company’s long-term growth potential remains intact, the stock is likely to experience further downside before resuming its upward trajectory.

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