October 10 Chart of the Day - Pepsi
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Pepsico, Inc. (PEP) has fallen significantly from its $196.88 all time high (ATH) earlier this year and is trading in the $165 area today.
Whenever charting something for the first time we always start on a higher time frame monthly chart to build out support/resistance and trend.
More times than not we'll then go down to a weekly or daily chart to identify potential levels of interest in both ways.
However, on this chart we prefer the monthly time frame to cancel out some of the "noise" on lower time frame charts.
That's not to say you can't go down to a lower time frame to identify shorter term opportuntities.
But for now, we'll keep it high level for our review.
Price may want to drift back to the $150 area before truly making a directional decision. But, if price wants to turn back up before reaching that area we've identified some upside targets in the $175-$180 zone.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
Take a look at the charts and let us know what you think.
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