Setting the Scene
After watching PepsiCo ($PEP) consolidate and reject the $145.00 resistance several times, I started paying attention to the 144.40 zone – a key area that had previously acted as support. I was looking for a clean rejection and confirmation below VWAP on the 5 minute chart before entering anything.
Once I saw price fade off that level with volume and a solid MACD cross into red territory, I knew the trade setup was in place. Everything lined up: structure, indicators, and timing.
The Setup
- VWAP: Price was trading below it
- Structure: Clear lower high under resistance
- MACD: Bearish crossover
- Bollinger Bands: Riding the lower band – trending with momentum
- RSI (5m): Below 40, confirming weakness
This wasn’t a rushed play. I was waiting for confirmation over prediction, and that helped me commit to the short when the time was right.
The Trade Itself
Once I entered around $144.42, the move developed quickly and cleanly. There were a few pauses around $143.60, but nothing that broke structure. I held firm toward my take profit level at $142.95, which had been pre-planned based on past price reactions.
It tapped the zone nearly perfectly before a bounce kicked in – great validation of the level and a reminder of how valuable patience and level planning can be.
Trade Result
- Gain: +1.02%
- Bars Held: 29 (5 min)
- Total Time: 2h 25m
- Volume During Move: 97.31K
This was one of those trades that unfolded exactly as planned – no panic, no mid-trade decision making. Just execution based on a setup I trusted.
Final Thoughts
This trade reminded me why it’s so important to wait for the story to unfold. I didn’t try to top the entry, and I didn’t get greedy with the exit. Just played the levels, respected my setup, and let the market do the rest.
This one brewed perfectly. More like this on tap, please.