Traders may not be aware that Yum Brands is the largest restaurant company in the world, with 46,000 locations globally and seven new locations opening across their brands every single day.
Impressive numbers to be sure, but let's check out the charts and indicators.
In this daily bar chart of YUM, below, we can see that prices have had a number of up and down swings over the past year. If you bought setbacks or weakness you were rewarded quicker than if you bought breakouts to new highs.
The pattern of trading looks stronger from August. A more sustained uptrend takes hold and YUM made new highs for the move up in November when the broad market slumped. That's impressive.
Prices are above the rising 50-day moving average line and above the bullish 200-day line.
The daily On-Balance-Volume (OBV) shows a rise from February and a stronger rise from late July. Overall the rising OBV line tells me that buyers of YUM have been more aggressive and this suggests higher stock prices ahead.
In the bottom panel the Moving Average Convergence Divergence (MACD) oscillator turned up recently to a fresh outright go long signal as it crossed the zero line.
In this weekly bar chart of YUM, below, we can see that prices have doubled over the past three years - not a bad return at all. Prices are above the rising 40-week moving average line.
The weekly OBV line has been in a confirming uptrend and the MACD oscillator has been above the zero line for most of the past three years.
In this Point and Figure chart of YUM, below, we can see the uptrend shown with price reversals and no volume and no time. An upside price target of $105 is indicated.
Bottom line strategy: YUM has outperformed the past two months but it has done well for investors the past three years. Risking below $86 for now, traders can trade from the long side looking for gains to $100 and $105.