Dr. Pepper Short Signal

Dr. Pepper Snapple Group inc. (DPS) first came to my attention when it pushed its yield over 3% for the first time earlier this year.  This was important news because many consider the coveted 3% yield to be that which brings the stock into consideration with income investors who are shopping for stable consumer staple companies.

That said, after analyzing the company from a technical perspective I predict a downtrend.  Further explanation after the chart…

The first thing you should notice is that since early June the stock had been downgraded to a yellow “swing” mode from the previous uptrend in green.  This indication makes me wonder if we’ll see the mid-May highs again any time soon.  Next, you can easily see the “peaking” emerging indicator in orange coming from the Swami WaveForm in the middle.  This peak signal appears to have arrived around the 20th of June.  Finally, the slight reddish “sell” signal coming from the Swami Predict indicates that a downtrend in prices might be in the near future.

I hope this analysis has been helpful and I welcome any comments or questions… especially from fundamental or value investors considering this stock.

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