Tomorrow's earnings could be the make or break for investors

PepsiCo is one of the first major corporations to provide investors with insights into consumer spending and demand over the last quarter. Yesterday, its stock closed the session with shares floating at $161.92 a share. The monthly chart does not offer great confidence for investors as the bearish momentum persists, with the price now approaching key support levels. The first support level in focus is the price level of $160.99 (white oval). A break below this level would shift the focus to the support base highlight using the green channel, this area should provide some support in the near term if volatility was to increase more than usual following the earnings. However, a break below this support base may create greater concerns for investors in the longer term as it may lead to yet another selling spree. A likelihood of a fresh bearish trend could see the price head as low as the lows of 2021 ($128). Though this would have to be re-evaluated at the time of any further declines. Any signs of consolidation either around current levels or along the support base would offer an incentive for investors for a potential shift of momentum, especially during the current bull market the SP500 finds itself in. Nonetheless, the technical indicators certainly favour the bears. The MACD is still in decline and so is the RSI as it reads 44.