Jim Cramer worked his way down the calendar during his Mad Money program Friday night. He noted that on Tuesday, Yum China Holdings, Inc. (YUMC) will host an analyst day, and that any data out of China will be welcomed.
Let's check out the charts and indicators.
In this daily bar chart of YUMC, below, we have a mixed set of indicators. Prices were in a downtrend from last March, but the downtrend and the 200-day moving average line were broken on the upside. The slope of the 50-day moving average line turned positive in the middle of November and the 50-day line crossed above the 200-day line last month for what is commonly called a (bullish) golden cross.
What is interesting and bullish is that the On-Balance-Volume (OBV) line has been rising since July - even as prices have declined.
The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line for much of the past twelve months, but it has shifted directions in late January. In February the oscillator crossed to the downside for a take-profits sell signal.
Like I said -- mixed signals.
In this weekly bar chart of YUMC, below, we can see more signals.
Prices are above the now rising 40-week moving average line. The weekly OBV line turned up in October, but has not broken out to a new high.
The weekly MACD oscillator crossed above the zero line for an outright go-long signal.
In this Point and Figure chart of YUMC, below, we can see that prices reached a target of $41.51. Reaching a price target is not bearish, but it can mean that prices consolidate before their next move.
Bottom-line strategy: When the bulk of indicators are bullish or bearish, it is easier to recommend a strategy, but when things are mixed, the process becomes more subjective. I would take a slightly more defensive position with YUMC as prices have stalled the past five weeks.