YUM runs into sellers again around 92.13
Yum! Brands Inc. (YUM) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
YUM ended the week -1.94% lower at 90.43 after losing $1.07 (-1.17%) today, but still significantly outperforming the S&P 500 (-2.33%) following today's NFP report. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (YUM as at Dec 07, 2018):
Friday's trading range has been $1.93 (2.11%), that's above the last trading month's daily average range of $1.57. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for YUM.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, YUM actually gained 0.90% on the following trading day.
Unable to break through the key technical resistance level at 91.66 (R1), the market closed below it after spiking up to 92.13 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. After having been unable to move above 92.00 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 92.13.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 89.59 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Yum! Brands. Out of 476 times, YUM closed higher 52.94% 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 62.18% with an average market move of 1.03%.