Hello traders and welcome to a new blog post where we discuss trade setups. Today, the spotlight will be on PepsiCo with the ticker $PEP. The stock broke upside last week after spending the Q4 2025 in a corrective pullback following a bullish rection to the blue box in the previous months.
PepsiCo is a global food and beverage company with the headquarters in New York. It was founded in 1965 through the merger of Pepsi-Cola and Frito-Lay. The company operates in over 200 countries and has a diverse portfolio of brands, including Pepsi, Mountain Dew, Lay’s, Doritos, Gatorade, Tropicana, and Quaker.
The stock reached an all-time high in May 2023, nearly hitting $197. This peak, based on long-term Elliott wave analysis, marked the completion of supercycle degree (III). A pullback followed for wave (IV) of the same degree, starting in May 2023 and lasting until May 2025 – a period of two years. Considering the long-term bullish trend, the pullback from May 2023 presented another opportunity to buy at lower prices. Fortunately, we covered this pullback in one of our free blog posts, which was published on February 16, 2025, using the weekly chart below.
Pepsico Weekly Chart – 16th February, 2025
In the chart above, we believed the corrective had a high probability of concluding within the zone marked by the blue box. Following the completion of a 7-swing structure, the post advised readers to buy at the blue box, where we anticipated wave (IV) to finish. From this point, we expected a strong bullish cycle for wave (V) to commence. Following that, we closely monitored the stock’s price action, particularly its reactions to the blue box. On November 16, 2025, we delivered an update featuring the weekly chart below.
Pepsico Weekly Chart – 16th November, 2025
The chart above shows that after an initial impulse breakaway from the blue box, the price corrected as wave ((2)). Following the end of wave ((2)), wave ((3)) rallies should follow. In the post shared on November 16, 2025, we stated:
The new weekly chart above shows a sharp rebound. This could signify the end of wave (IV) or the start of a 3/7 swing bounce leading to a deeper wave (IV). If wave (IV) has ended, wave (V) should advance to $215 and potentially higher. However, if the bounce is corrective, buyers should anticipate a price reach of $168-$175. Traders who went long from the blue box have already reached the first target at 156.33. Therefore, while booking some profits, buyers can continue to hold the rest of their position with a stop adjusted to $127. This appears to be a solid plan.
As predicted, wave ((2)) made a new low, retesting the box. These multiple retests over a few weeks enabled more traders to participate. The anticipated surge occurred in the past two weeks, as demonstrated in the latest weekly chart below.
PepsiCo Weekly Chart – 7th February 2026
The chart above shows a significant breakout. The price has already reached the $168-$175 target, as indicated in the previous update, and is on track for the next target of $215, at least for wave (V). Therefore, buyers should continue to hold their positions but ensure a risk-free outcome. Book some profit and adjust the remaining position to break even. This allows you to relax and free up capital for new opportunities.
Source: https://elliottwave-forecast.com/bluebox-wins/pepsico-bounces-from-blue-box-aiming-200-next/