YUM runs into sellers again around 87.41
Yum! Brands Inc. (YUM) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
YUM finished the month -3.14% lower at 86.91 after edging lower $0.07 (-0.08%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (YUM as at Jun 30, 2020):
Tuesday's trading range has been $1.87 (2.18%), that's below the last trading month's daily average range of $2.41. 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 84.17 and 87.54 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 88.23 (R1). After having been unable to move above 87.18 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 87.41. The last time this happened on June 26th, YUM actually gained 2.58% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could accelerate should prices move above the nearby swing high at 89.29 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 84.17 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Yum! Brands. Out of 809 times, YUM closed higher 54.02% 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 60.44% with an average market move of 0.70%.