Pullback in Yum Brands

NYSE:YUM   Yum! Brands, Inc.
Yum Brands had a strong rally in late 2022. Now after a pause, the restaurant company may interest pullback buyers.

The first pattern on today’s chart is $125.70, a daily closing high from last April. YUM hesitated below that level in November and then began the New Year by testing it. Prices are now holding the same zone again, which could suggest old resistance has become new support.

Second, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA during the period of consolidation. That may suggest the longer-term trend is turning bullish.

Speaking of the 50-day SMA, the owner of Taco Bell and Pizza Hut is lurking near that intermediate-term trend indicator. Traders may watch to see if it can be reclaimed.

Finally, stochastics are rebounding from an oversold condition.

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