KDP - Breaking out or breaking down

KDP is oversold on the weekly chart in regards to indicators. The past 3 weeks/candles show us strong buying pressure at these levels indicated by the long wicks.

VWAP has settled under the price as support, and Q4 is typically a strong sales quarter for soft drink manufacturers.

Within the next week, the price action should break above the resistance trendline and present the opportunity for 6-8% profit.

We will set a tight stop at 3.73% or 27.60.

Comment:

This is a good time to lock in profit. KDP is overbought on the daily and might be heading back down to the ~29.22 price area in the near-term.