PepsiCo Jumps 4.23% On Heavy Volume As Technicals Signal Bullish Reversal

PepsiCo (PEP) gained 4.23% on the latest trading session (October 9, 2025), closing at $144.71 after oscillating between $138.59 and $144.74. This robust advance occurred alongside elevated volume of 13.71 million shares, signaling strong buyer conviction. The following technical analysis examines this move within the context of multiple indicators.
Candlestick Theory
The October 9 session formed a decisive bullish marubozu candle, closing near its high after testing the $138.59 support level established on October 8. This pattern indicates rejection of lower prices and potential trend reversal confirmation. Immediate resistance converges near the $146–$148 zone, where multiple September price congestion occurred, while the October 8 low of $138.59 establishes a short-term floor.
Moving Average Theory
The 50-day moving average (approximately $142.50) recently crossed below the 100-day SMA (near $145.30), reflecting intermediate-term bearish momentum. However, the price rebounded above both after touching the rising 200-day SMA (~$139.80) on October 9. This triple-SMA interaction suggests the long-term uptrend remains intact, with the 200-day SMA now acting as dynamic support.
MACD & KDJ Indicators
MACD histogram bars transitioned to positive territory on October 9, signaling improving momentum as the fast line ascends toward a potential bullish crossover. Concurrently, the KDJ oscillator exited oversold conditions (K-line: 25→45, D-line: 20→30, J-line: 35→75) with the %K line crossing above %D. This synchronized improvement in both momentum indicators suggests strengthening upside potential, though sustained movement above the 50 midline is needed to confirm bullish conviction.
Bollinger Bands
Bollinger bandwidth contracted 18% over the prior week, indicating declining volatility before the October 9 breakout. Price closed above the middle band (20-SMA near $141.80), testing the upper band at $144.74. This compression-release pattern suggests renewed directional momentum, with a sustained position above $142 implying continuation toward the $147 upper band.
Volume-Price Relationship
The 4.23% advance occurred on the highest volume in three weeks (13.71M shares), significantly exceeding the 20-day average volume of 7.88M. This volume surge validates the breakout, indicating institutional participation. Consecutive higher closes on increasing volume since October 6 demonstrate accumulation, though resistance tests require volume confirmation for sustained momentum.
Relative Strength Index (RSI)
The 14-day RSI rebounded sharply from near-oversold territory (32.5 on October 8) to 54.5 after the rally, neutralizing prior bearish momentum. While this places PEP back in neutral territory, the velocity of the RSI ascent suggests strong buying pressure. Traders should monitor for potential overbought conditions if RSI approaches 70 without corresponding price strength.
Fibonacci Retracement
Applying Fibonacci levels to the recent correction from $157.80 (September 2 high) to $138.59 (October 9 low) shows the rally stalled near the 38.2% retracement ($145.93). This aligns with the $146–$148 resistance zone identified in candlestick analysis. A decisive close above $146 would next target the 50% level ($148.20), while failure here could retest the 23.6% support ($143.12).
Confluence & Divergence Observations
Notable confluence exists between the bullish candlestick reversal, volume confirmation, and KDJ/MACD momentum inflections – all occurring near the 200-day SMA and 23.6% Fibonacci level. However, a minor divergence developed as RSI recovery outpaced price movement, suggesting near-term consolidation risk if volume contracts. The convergence of Bollinger Band expansion, moving average support, and Fibonacci levels at $142–$143 creates a high-probability support zone for pullbacks.