Pepsi has broken out of the daily down channel, and I’m now watching for a pullback into the breakout retest zone rather than chasing price after the initial move.
The key area I’m focused on is the $140.15–$141.60 breakout retest zone. If price pulls back into that area and holds, it could offer a cleaner long entry.
A stronger bullish confirmation would come from:
price holding the retest zone
price reclaiming the 100 SMA
momentum continuing to improve
Daily RSI has already reclaimed the 50 level, which is a constructive sign for momentum.
Targets
Target 1: $149.23 — 200 SMA confluence
Target 2: $160.25 — resistance
Target 3: $170.57 — major resistance
Important warnings / trade conditions
PEP is still rejecting from the 100 SMA, so the breakout has not fully proven itself yet.
The long-term red line is acting as macro support turned resistance, and price is currently still below it.
The red line and rising green line may be forming a rising wedge, which creates a potential bearish risk if support fails.
Because of that, I prefer a pullback entry into support rather than chasing strength into resistance.
If price loses the breakout retest zone, the bullish setup weakens materially.
A breakdown of the rising green support line would increase the odds of a larger wedge failure.
Trade thesis
This is a conditional bullish retest setup, not a momentum chase.
The idea is to let price come back into support, see if bulls can defend the breakout, and then target the overhead resistance levels. But if price loses the retest area and wedge support, the bullish thesis becomes much less attractive.
Educational analysis only — not financial advice.