[isatrader]

Not sure if PEP is entering stage 3 or still on stage 2.  How can I really determine if the SMA30 is getting flat here?

Would the stop be at $130.87?
The MRS is getting negative, it should be a sign to sell it at the value above of $130.87?

Thanks

Hi alphatech.

The PEP chart looks to be still in Stage 2B currently imo, which is considered late in the uptrend, as it's been in Stage 2 for nine months now, and has had two significant pullbacks towards the rising 30 week MA. Some people may argue that it's in early Stage 3, which is know as Stage 3A, as the most recent pullback to the 30 week MA went below it, and the 30 week MAs momentum has slowed, and is now rising more slowly than it has been through the Stage 2 advance. But either way, there's very little difference between the two sub stages of Stage 2B and Stage 3A, as with both you should be considering tightening your stop loss position, and potentially taking some profits if you've been in since the beginning of the Stage 2 advance.

I've marked up the weekly chart with where I think the investor stop losses should have gone, and although the price hasn't reached the previous high yet. It is close to it, and the combination with the loss of momentum in the stock while the broad market is breaking out strongly to new highs suggests more caution imo. And so I would raise investor stop early, as of this weeks close, to under the recent swing low just under 130. So probably at around 128.90 to give it a bit of room below the swing low and a whole number.