Looking at the technical picture of the Yum! Brands Inc stock (NYSE: YUM), we can see that since peaking in the beginning of September, the price started drifting lower and is now trading below a short-term downside resistance line taken from the high of September 2nd. That said, recently, the stock started recovering some of its losses and is seen balancing above a short-term tentative upside line drawn from the low of September 21st. Given that YUM looks to be stuck between the two line, we will take a neutral stance for now and wait for a break through one of those lines first, before examining the next short-term directional move.
If the aforementioned upside line fails to provide support and breaks, this may signal that the downtrend is still on the stronger side. A drop below yesterday’s low, at 90.10, might strengthen the downside scenario and open the door for lower levels. That’s when we will aim for the 88.94 obstacle, a break of which could clear the path to the lowest point of September, at 88.00.
The RSI and the MACD are not showing any clear direction, as both remain on the flat side. However, the RSI is slightly below 50 and the MACD, although a bit below zero, remains above its trigger line. The two oscillators seem to be in support of the notion to stay neutral, for now.
Alternatively, if the previously mentioned downside line breaks and the share price climbs above the current high of this week, at 92.38, that may interest a few new buyers to enter the game. The stock could then travel to the 94.35 obstacle, which if fails to provide resistance and breaks, might set the stage for a test of the 95.39 zone, marked by the high of September 16th.
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