The Yum Brands (YUM) fast food company has been a strong leader in the retail sector over the past year. Their competitors Chipotle (CMG), Jack in the Box (JACK), and Buffalo Wild Wings (BWLD) have also been strong during the same period, but I have my eye on Yum Brands because its stock price is right up against an all-time high, reached just six weeks ago – and there is plenty of energy here for a nice run higher.
A Fortune 500 corporation, Yum Brands operates the licensed brands Taco Bell, KFC, Pizza Hut, and WingStreet worldwide. It was a spinoff from Pepsi in 1997, and though they have faced some fundamental issues, namely with the Chinese market, it seems those problems
may be in the past.But back to Yum Brands’ chart. The indicators are flashing buy signals after a shallow 3% drop in early March. The MACD is poised to cross over and will once again flash a buy signal. Turnover has been decent since mid-March with the up trend is still intact. Order flow has been impressive, but it was particularly strong on Monday, April 13 when we saw heavy call buying in April, May and July strikes.
In our Explosive Options trading service, we added the July 82.5 call strike. Want to learn more about this stock? Watch the video below.
Yum Brands Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through the Yum Brands stock (NYSE: YUM) and my analysis as mark up our chart of the week.
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