Pepsi Bursts Higher

Pepsico (PEP) is testing a key level today as it extends a healthy move off the late-December lows, and the stock is up more than 1% on the day as it testing last month's highs just below $71. Thursday's surge began with a gap-higher open, which continued a string of seven straight higher lows since the market's powerful New Year's Eve upside reversal. While volume is running average, price action is quite bullish. Shares are leaving behind solid support, and they appears headed for more upside in the near term.

Pepsico (PEP) -- Daily Source: TradeStation View Chart » View in New Window »

Late last month, the stock had been hit hard after a rally off the 200-day moving average failed near $71. But, on the final day of the year, shares put in a fresh low before mounting a solid recovery, and they finished that session with a 0.6% gain. Pepsico has been on fire ever since. With Thursday's gain as of this writing, the stock has risen more than 4% from the Dec. 31 lows. A key divergent low now appears to be in place, along with layers of support at higher levels....139 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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