YUM! Brands (YUM-N, Monday’s close US$153.94) rallied from US$54.95 in March, 2020, to US$138.77 in January, 2022 (A-B), reversed the trend when it fell below the 40-week Moving Average (40wMA – C) and declined to a low of US$106.77 in October (D). From there, the stock started to rally above a rising trendline (dotted line) but ran into resistance at US$142-143 (shaded area). The recent decisive rise above this level signaled a breakout and the start of a new uptrend (E).
Behaviour indicators including the rising 40wMA confirm the positive status. YUM! Brands is currently in the midst of a minor correction toward the average for a better entry level. A sustained rise above US$154-155 would signal the resumption of the uptrend. Only a decline below ±US$142 would be negative.
Point & Figure measurements provide targets of US$175 and US$195. Higher targets are visible.
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Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart courtesy of www.LSEG.com.