Elliott Wave Forecast Team
ElliottWave-Forecast.com
Pepsico ($PEP) has been in a bearish cycle since May 2023. However, the cycle is getting extreme and the sell-off may relax in the coming weeks or months. While we may not know what will trigger the buyers to find entries soon, traders should be aware of this key zone for opportunities.
PepsiCo is a global food and beverage company with the headquarters in New York. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. The company operates in over 200 countries and has a diverse portfolio of brands, including Pepsi, Mountain Dew, Lay’s, Doritos, Gatorade, Tropicana, and Quaker.
Pepsico is historically a profitable company since its stock went public in the 60s. However, since May 2023 the stock prices have been on a bearish cycle – down by 28%. The headlines believed the decline has been driven largely by slowing sales growth particularly on snacks and sugary drinks. This has put pressure on the company’s revenue and profit margin outlook. However, from the lens of the Elliott wave theory, the decline should have been expected. A 5-wave bullish cycle evolved in March 2020 immediately after the COVID-19 sell-off. After such a 5-wave rally, 3 -wave decline should follow to correct the 5-wave cycle. That’s exactly what the Pepsico stock prices have been observing since May 2023. However, this cycle appears to be closing to completion. If that is the case, the all-time bullish cycle from the all-time lows should resume.
Pepsico Elliott Wave analysis – 02.16.2025
The weekly chart above shows the ending waves of wave (III) of ((III)) of the all-time bullish cycle from the all-time lows. The decline from March 2023 shows a double zigzag (7-swing structure) corrective sequence entering the extreme zone for wave (IV). Within a bullish sequence, traders should look forward to go long from the dips. On the other hand, traders should look at shorting bounces in a bearish sequence. That’s our idea of trading that we like presenting to members of Elliottwave-Forecast.
The chart above shows the extreme zone at 142.13-116.60. Price is within the zone but may extend lower into it with current bearish leg from January 2025. However, we can expect at least a 3-swing bounce from this zone if not an impulse recovery starting wave (V). Buyers will look at exploiting this zone for a Long opportunity with stop slightly below 116.6.
FURTHER DISCLOSURES AND DISCLAIMER CONCERNING RISK, RESPONSIBILITY AND LIABILITY Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of xperience and risk appetite. Do not invest or trade capital you cannot afford to lose. EME PROCESSING AND CONSULTING, LLC, THEIR REPRESENTATIVES, AND ANYONE WORKING FOR OR WITHIN WWW.ELLIOTTWAVE- FORECAST.COM is not responsible for any loss from any form of distributed advice, signal, analysis, or content. Again, we fully DISCLOSE to the Subscriber base that the Service as a whole, the individual Parties, Representatives, or owners shall not be liable to any and all Subscribers for any losses or damages as a result of any action taken by the Subscriber from any trade idea or signal posted on the website(s) distributed through any form of social-media, email, the website, and/or any other electronic, written, verbal, or future form of communication . All analysis, trading signals, trading recommendations, all charts, communicated interpretations of the wave counts, and all content from any media form produced by www.Elliottwave-forecast.com and/or the Representatives are solely the opinions and best efforts of the respective author(s). In general Forex instruments are highly leveraged, and traders can lose some or all of their initial margin funds. All content provided by www.Elliottwave-forecast.com is expressed in good faith and is intended to help Subscribers succeed in the marketplace, but it is never guaranteed. There is no “holy grail” to trading or forecasting the market and we are wrong sometimes like everyone else. Please understand and accept the risk involved when making any trading and/or investment decision. UNDERSTAND that all the content we provide is protected through copyright of EME PROCESSING AND CONSULTING, LLC. It is illegal to disseminate in any form of communication any part or all of our proprietary information without specific authorization. UNDERSTAND that you also agree to not allow persons that are not PAID SUBSCRIBERS to view any of the content not released publicly. IF YOU ARE FOUND TO BE IN VIOLATION OF THESE RESTRICTIONS you or your firm (as the Subscriber) will be charged fully with no discount for one year subscription to our Premium Plus Plan at $1,799.88 for EACH person or firm who received any of our content illegally through the respected intermediary’s (Subscriber in violation of terms) channel(s) of communication.
Recommended content
Editors’ Picks
AUD/USD: Warming up or the RBA
AUD/USD added to the move higher and rose to new two-month peaks near 0.6370 on the back of the soft tone in the US Dollar and rising expectation ahead of the RBA’s interest rate decision.
EUR/USD: Next target comes at 1.0530
EUR/USD traded in an inconclusive fashion amid the equally vacillating development in the Greenback, returning to the sub-1.0500 region following reduced trading conditions in response to the US Presidents’ Day holiday.
Gold resumes the upside around $2,900
Gold prices leave behind Friday's marked pullback and regain some composure, managing to retest the $2,900 region per ounce troy amid the generalised absence of volatility on US Presidents' Day holiday.
Ethereum Price Forecast: ETH outperforms top cryptocurrencies, sees $1.1 billion in stablecoin inflows
Ethereum (ETH) is up 1% on Monday, stretching its weekly gains to nearly 3%, while other top blockchains experience losses. The top altcoin's recent outperformance can be attributed to rising stablecoin inflows and investment from institutional investors through ETH exchange-traded funds (ETFs).
Bitcoin Price Forecast: BTC stalemate soon coming to an end
Bitcoin price has been consolidating between $94,000 and $100,000 for almost two weeks. Amid this consolidation, investor sentiment remains indecisive, with US spot ETFs recording a $580.2 million net outflow last week, signaling institutional demand weakness.
The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.