Jim Cramer on Monday looked at a number of areas you could buy as the trade war continues.
YUM! Brands Inc. (YUM) was highlighted as a restaurant company with accelerating sales without exposure to China. Let's order up some charts and indicators.
In this daily bar chart of YUM, below, we can see an uptrend as prices move from the lower left to the upper right of the chart. YUM is above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has been in a similar uptrend the past twelve months telling us that buyers of YUM have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside in recent days for a fresh, outright go-long signal.
In this weekly bar chart of YUM, below, we can see that prices have just about doubled in the past three years. Prices are looking extended compared to the rising 40-week moving average line. The weekly OBV line confirms the action of more aggressive buying and the MACD oscillator is the most bullish it has been in three years.
In this Point and Figure chart of YUM, below, an upside price target of $134 is projected.
Bottom line strategy: YUM could trade sideways for a while, consolidating its gains of the past two months. But with bullish charts and indicators, I would expect that the rally resumes with around $134 as the next upside target. A close below $109 would weaken the picture.
