Pullback in Yum Brands
Yum Brands had a strong rally in late 2022. Now after a pause, the restaurant company may interest pullback buyers.
The first pattern on today’s chart is $125.70, a daily closing high from last April. YUM hesitated below that level in November and then began the New Year by testing it. Prices are now holding the same zone again, which could suggest old resistance has become new support.
Second, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA during the period of consolidation. That may suggest the longer-term trend is turning bullish.
Speaking of the 50-day SMA, the owner of Taco Bell and Pizza Hut is lurking near that intermediate-term trend indicator. Traders may watch to see if it can be reclaimed.
Finally, stochastics are rebounding from an oversold condition.
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The first pattern on today’s chart is $125.70, a daily closing high from last April. YUM hesitated below that level in November and then began the New Year by testing it. Prices are now holding the same zone again, which could suggest old resistance has become new support.
Second, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA during the period of consolidation. That may suggest the longer-term trend is turning bullish.
Speaking of the 50-day SMA, the owner of Taco Bell and Pizza Hut is lurking near that intermediate-term trend indicator. Traders may watch to see if it can be reclaimed.
Finally, stochastics are rebounding from an oversold condition.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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