PepsiCo Pops Off 🥤 Is This the Start of a Real Comeback?

Breaking Out of the Downtrend After Q2 Earnings Surprise

Hey everyone,

Today I’m zooming in on a name that’s been stuck in the doghouse for months but suddenly woke up — PepsiCo Inc. ($PEP). After grinding lower for most of the year and getting punished following a weak Q1, Pepsi just flipped the script with a strong Q2 earnings beat and a decisive move off the lows.

Today I’ll break down the full chart and walk you through exactly what I’m seeing — and how I’d look to trade it as both a short-term swing trader and a long-term investor. Whether you’re bullish or skeptical of the bounce, there are setups worth paying attention to here.

Let’s get into it 👇

---

📰 What’s the Story?

PepsiCo ($PEP) jumped higher after posting better-than-expected Q2 results, ending a three-quarter streak of top-line declines. Revenue grew modestly at 1% year-over-year to $22.72 billion, while organic growth improved to 2.1%. EPS came in at $2.12, topping the $2.03 consensus, and the report helped ease concerns after a disappointing Q1.

Encouragingly, volume trends improved in its core Frito-Lay and Quaker Foods segments, and its Pepsi-Zero brand delivered double-digit growth. The completed Poppi acquisition also bolstered their appeal among younger, health-conscious consumers.

Although gross profit dipped and full-year guidance remains cautious, the market was clearly relieved. PEP shares surged nearly 6% post-earnings, reclaiming key technical levels in the process.

So now the big question is: was that just a relief rally… or the start of something more?

---

🧠 Let’s Read the Chart

Friday’s close: $143.24
200-day SMA: $148.55
50-day SMA: $136.87
10-day SMA: $132.19

• Price Action: After a painful 8-month slide, PEP bottomed near $127.60 in late June and began to creep higher into earnings. The Q2 report sent shares gapping up above the 50-day SMA and clearing short-term resistance near $140. That’s a bullish technical development — but it’s now battling overhead at the 200-day SMA around $148.55.

• Volume: Big earnings gap days like this mean nothing without volume — and this one came with authority. Volume spiked significantly, confirming strong institutional buying interest.

• RSI (67): Momentum is picking up, with RSI pushing into bullish territory but not yet overbought. This is exactly the type of reading I like to see after a trend reversal — strength, but not exhaustion.

• MACD: The MACD line just pushed firmly above the signal line and is accelerating higher. This crossover confirms the bullish momentum and supports continuation higher.

• Stochastics (82): This is the one flag to keep in mind — stochastics is sitting in overbought territory. It doesn’t mean PEP has to pull back immediately, but it suggests the next few days could bring consolidation or even a retest of the breakout zone.

---

🔁 My Take and Trade Setups I’d Consider