PepsiCo Inc. (NASDAQ: PEP) tumbled last week falling below 136.00, a move that confirmed a lower low on both the daily and 4-hour charts. That said, the slide was stopped at 133.45, and yesterday, the stock rebounded somewhat. Overall, Pepsi continues to trade below a downside resistance line taken from the record peak. hit on December 29th, and thus, we would consider the short-term outlook to be negative for now.

A break below the 133.45 barrier would confirm a forthcoming lower low and may open the path towards the low of October 30th, at 131.70. If that hurdle is not able to halt the slide either, then a break lower may see scope for extensions towards the 129.30 area, marked as a support by the low of September 21st.

Looking at our short-term oscillators, we see that the RSI rebounded from near its 30 line, while the MACD, although below both its zero and trigger lines, shows signs of bottoming as well. Both indicators detect slowing downside speed and suggest that some more advances may be in the works before the next negative leg, perhaps for the price to test the 136.00 zone as a resistance this time.

That said, in order to start examining the case of a reversal back to the upside, we would like to see a break above 139.55. This may also take the stock above the pre-mentioned downside line and may initially pave the way towards the 142.10 zone, which provided resistance on January 27th and February 5th. Another break, above 142.10, may allow investors to push the action towards the peak of January 11th, at 144.35.

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