YUM runs into sellers around 105.72 for the third day in a row
Yum! Brands Inc. (YUM) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
YUM ended the week 3.18% higher at 105.28 after gaining $0.25 (0.24%) today on low volume, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.38 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (YUM as at Feb 14, 2020):
Friday's trading range has been $1.09 (1.04%), that's below the last trading month's daily average range of $1.61. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for YUM. Prices continued to consolidate within a tight trading range between 103.80 and 105.72 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on February 7th, YUM gained 0.81% on the following trading day.
Yum! Brands managed to close back above the 20-day moving average at 105.25. The stock ran into sellers again today around 105.72 for the third trading day in a row after having found sellers at 105.66 in the prior session and at 105.60 two days ago.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Yum! Brands. Out of 123 times, YUM closed higher 55.28% 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 71.54% with an average market move of 1.15%.