Shares of PepsiCo (PEP.US) tries to rebound today, rising more than 3% after the news that activist fund, Elliott Management disclosed $4 billion stake in the company. After the opening session on Wall Street, we can see a supply on PepsiCo shares as investors 'sell' the news. The company faces problems with falling volumes and consumer do not accept higher product prices, which pressure sales and business growth.
The significant stake of Elliott Management signals that the large player on Wall Street has seen PepsiCo valuation as a potential bargain despite hard market conditions. As we can see below, Pepsi rebounds above EMA200, rising more than 20% since the June lows at $126 per share. If shares will close the session above $153, the upward momentum may lead shares above $160 resistance, marked by price action.
Source: xStation5
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