YUM closes within previous day's range
Yum! Brands Inc. (YUM) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, YUM finished the month 4.76% higher at 91.05 after losing $0.59 (-0.64%) today, significantly underperforming the S&P 500 (0.77%). 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 Jul 31, 2020):
Friday's trading range has been $1.70 (1.86%), that's slightly below the last trading month's daily average range of $1.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for YUM.
After trading as low as 90.16 during the day, the market found support at the 50-day moving average at 90.21. The last time this happened on June 22nd, YUM gained 0.11% on the following trading day. Prices are trading close to the key technical resistance level at 92.32 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Yum! Brands. Out of 80 times, YUM closed higher 61.25% 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 60.00% with an average market move of 0.69%.