Yum China Holdings Inc. (YUMC) is trading higher Monday on reports that the company is seeing early signs of recovery as business gradually resumes and people return to work in China.
Let's check out the charts of YUMC to see if investors are returning.
In the daily Japanese candlestick chart of YUMC, below, we can see that prices have held just above the May lows. Weakness toward and below $39 is getting rejected by the lower shadows. The 200-day moving average line is still flat and the slope has not turned negative like the 50-day average line. A bearish death cross sell signal looks like it is late and not likely to be successful.
The On-Balance-Volume (OBV) line shows only a slight decline from the middle of January, which suggests that the decline in the share price was not due to aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator is close to a cover shorts buy signal.