Stock Market Beverage Wars: PepsiCo, Coca-Cola, Snapple
Recently, leading soda and non-alcoholic beverage stocks have been some of the best market performers. One of the leading soda and beverage stocks is PepsiCo Inc (NYSE:PEP). This stock is now approaching its 2007 high, which was $79.79 a share. Last week, PEP stock closed at a new 52 week high of $78.64 a share. Anytime a leading stock trades into an important old high, that old price will become near term resistance. Should PEP trade above that level, the next near term chart resistance would be around the $81.00 - $82.00 level; watch for PEP to see a pullback from this area. Once this price range is reached, traders should then watch for a consolidation pattern to form, this will indicate that the stock is going to move higher in the future. PEP stock is one of the strongest stocks in its industry group.
Some of the leading competitors to Pepsi Co Inc include The Coca-Cola Company (NYSE:KO), Dr Pepper Snapple Group Inc (NYSE:DPS), Cott Corporation (USA) (NYSE:COT), and Monster Beverage Corp (NASDAQ:MNST). Most of the leading beverage stocks are looking close to being overbought in the near term. This tells us that the upside in this sector should be limited. PEP stock is still the strongest stock in the industry group at this time, but don't expect much more upside in the near term. Simply read the charts correctly and the direction of the next move will reveal itself.