Meanwhile, $96 billion food giant PepsiCo ( PEP) is forming a solid if/then trade. An if/then trade is another name for a sideways consolidation -- it's a trade whose direction is contingent on which way shares break out of the channel. For Pepsi, resistance is currently $64.75, and support is at $60. That's a relatively wide channel, but its breakout implications are equally big as a result.

An if/then trade works like this: If shares of Pepsi break out above $64.75 resistance, then buy shares. If shares of Pepsi break down below $60, then this stock is a short candidate. Don't be fooled by the fact that shares are consolidating near the lower end of their range right now. Pepsi's positioning within the channel doesn't matter; it's Pepsi's exit from the channel that's technically significant.

Either way this trade ultimately works out, I'd recommend placing a protective stop back just within the channel.

Pepsi, one of the top-yielding food and beverage stocks, is one of Scott Rothbort's 10 Low-Volatility Stocks for Rising Volatility.

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