YUM closes within prior day's range after lackluster session
Yum! Brands Inc. (YUM) Technical Analysis Report for Nov 09, 2018 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, YUM finished the week 4.4% higher at 90.72 after gaining $0.26 (0.29%) today, significantly outperforming the S&P 500 (-0.92%). Today's close at 90.72 marks the highest recorded closing price since October 17th. Trading up to $0.38 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on October 23rd, YUM actually lost -1.98% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (YUM as at Nov 09, 2018):
Friday's trading range has been $0.95 (1.05%), that's below the last trading month's daily average range of $1.70. Weekly volatility is also lower, being slightly below 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 Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 91.27 (R1). After having been unable to move above 90.85 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 91.03.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 91.63 where further buy stops might get triggered. With prices trading close to this year's high at 92.21, upside momentum could accelerate should Yum! Brands be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Yum! Brands. Out of 788 times, YUM closed higher 54.44% 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 58.50% with an average market move of 0.65%.