Analysis: PEP

What a great quarter for  Action Alerts PLUS holding PepsiCo ( PEP) . 
 
The snack food company saw top-line and bottom-line beats and boosted guidance for the future. That is not something you see much in the market these days, so we are thankful to have PEP in our portfolio.
 
The recent correction in the stock took PEP down to a strong support level at $160, following a 20% correction. The buyers have stepped in here today, though, in a big way, with strong volume and solid price action. Notice the turn up in the Moving Average Convergence Divergence (MACD) (second pane), while stochastic momentum is turning up as well.
 
With some follow through we could see PEP make a run toward its old highs. This would be a good spot to add more shares as I mentioned on the rundown earlier this morning.