YUM finds buyers again around 86.78
Yum! Brands Inc. (YUM) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
YUM finished the week -2.17% lower at 88.05 after gaining $0.98 (1.13%) today, slightly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (YUM as at Oct 12, 2018):
Friday's trading range has been $1.51 (1.73%), that's above the last trading month's daily average range of $1.11. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for YUM.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 88.73 (R1). After having been unable to move lower than 86.96 in the prior session, the market found buyers again around the same price level today at 86.78. The last time this happened on Monday, YUM gained 0.60% on the following trading day.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 89.46.
Though Yum! Brands is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test September's nearby low at 86.53.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Yum! Brands. Out of 583 times, YUM closed higher 52.49% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.49% with an average market move of 0.61%.