Yum! Brands Inc. (YUM) is known for the KFC, Pizza Hut, Taco Bell and The Habit Burger Grill restaurant chains. Its stock price is close to a new 52-week high, but will talk of a slowing economy turn prices soft? Let's review Yum's charts and indicators.
In this daily bar chart of YUM, below, I can see prices in a four-month consolidation pattern. Prices are in the upper end of the range, but that does not guarantee an upside breakout. Trading volume has been declining the past four months, suggesting that traders are going elsewhere with their trading capital. Prices are trading above the rising 50-day moving average line and above the rising 200-day line. The daily On-Balance-Volume (OBV) shows us a more positive picture than the trading volume histogram. The Moving Average Convergence Divergence (MACD) oscillator has crossed above the zero line for a buy signal.
In this weekly Japanese candlestick chart of YUM, below, I see a mixed picture. Prices are in an uptrend from October but in a large sideways trend from the middle of 2021. The slope of the 40-week moving average line is positive. The weekly OBV line shows improvement from October but is well below its 2021 zenith. The MACD oscillator is above the zero line but in a correction.
In this daily Point and Figure chart of YUM, below, I can see a potential upside price target in the $189 area, but a trade at $138 is needed to refresh the uptrend.
In this weekly Point and Figure chart of YUM, below, I can see the same price target as the daily chart above -- $189.
Bottom line strategy: Traders could probe the long side of YUM on strength above $138, risking to $130. The Point and Figure charts suggest a target of $189
