YUM closes higher for the 3rd day in a row
Yum! Brands Inc. (YUM) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, YUM ended Wednesday at 94.81 gaining $1.29 (1.38%), notably outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 94.32, the share confirmed its breakout through the prior session high after trading up to $1.09 above it intraday.
Daily Candlestick Chart (YUM as at Sep 16, 2020):
Wednesday's trading range has been $1.79 (1.91%), that's slightly below the last trading month's daily average range of $1.88. 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 White Candle.
Buyers managed to take out the key technical resistance level at 93.90 (now S1), which is likely to act as support going forward. The last time this happened on July 29th, YUM actually lost -3.36% on the following trading day. After spiking up to 95.41 during the day, the market found resistance at the 20-day moving average at 95.06.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Yum! Brands. Out of 564 times, YUM closed higher 52.13% 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 58.16% with an average market move of 0.50%.