YUM! Brands Rises 3.14% With Bullish Technical Indicators Aligned

Candlestick Theory
YUM! Brands exhibits a short-term bullish pattern with three consecutive white candles, culminating in a 3.14% gain over this period. The most recent session closed near the high ($142.7 vs. high: $143.08), reflecting buying pressure. Key resistance is established at $143.08 (June 24 high), aligning with the June 12-13 consolidation zone ($143.97–$145.43). Support lies at $138.36 (June 18 swing low), reinforced by the psychologically significant $140 level. The absence of reversal patterns (e.g., Doji, Bearish Engulfing) suggests ongoing bullish sentiment in the immediate term.
Moving Average Theory
The 50-day moving average (approx. $140.80, based on volume-weighted calculation) recently turned support after the price rebounded from it on June 20. Both the 100-day ($138.50) and 200-day ($136.20) MAs slope upward, confirming a long-term uptrend. The current price ($142.7) trades above all three key MAs, indicating sustained bullish momentum. Notably, the 50-day MA may act as dynamic support on pullbacks, while a sustained break above $143 could accelerate gains toward the 2025 high ($162.53).
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover emerging below the zero line, suggesting recovering momentum. The histogram turned positive on June 23, aligning with the price rebound. KDJ oscillators (K: 65, D: 55, J: 85 estimate) indicate a bullish stance with J-value entering overbought territory (>80). While this signals short-term strength, traders should monitor for potential pullbacks if KDJ retreats from overbought levels. Confluence with MACD supports the current uptrend’s validity.
Bollinger Bands
Bollinger Bands (20-day, 2σ) contracted sharply in mid-June, reflecting decreased volatility before the recent breakout. The price is now testing the upper band ($143.50), a typical resistance level during uptrends. Band expansion beginning June 23 confirms renewed directional momentum. A close above the upper band could signal overextension, while a hold near $143.50 might initiate consolidation. Lower band support resides near $138.60, converging with the 100-day MA.
Volume-Price Relationship
Volume declined during the three-day rally (1.63M shares vs. June 20’s 2.96M), suggesting cautious participation. The June 20 reversal candle occurred on high volume (2.96M), validating support at $138.55. Resistance at $140–$141 (June 17-18) saw elevated volume during breakdowns, highlighting selling pressure. Sustained advances require volume expansion; failure to do so may invite profit-taking near $143 resistance.
Relative Strength Index (RSI)
The 14-day RSI (~62 estimate) has climbed from oversold levels (<35 in late May) to neutral territory. Current readings suggest moderate upward momentum without immediate overbought risk (below 70). Divergence emerged in June: while price made lower highs, RSI formed higher lows, foreshadowing the recent rebound. Further ascent toward 70 could trigger short-term consolidation, but no bearish divergence is yet evident.
Fibonacci Retracement
Applying Fib levels to the March 31 peak ($162.53) and the April 24 trough ($129.71):
- 38.2% retracement: $143.50 (near current resistance)
- 50% level: $146.12 (major swing point on May 22)
- 61.8% retracement: $148.75
The price is testing the 38.2% level. Confluence exists here with the June 12 high ($143.97) and Bollinger upper band. A decisive break above $143.50 opens the path to $146, while rejection could retest $138.60 (50-day MA/23.6% Fib).
Summary and Confluence
Technical indicators align for short-term bullish bias but highlight critical resistance at $143–$143.50 (candlestick highs, 38.2% Fib, Bollinger upper band). Sustained volume is needed to breach this zone. Support is robust near $138.50–$140 (50-day/100-day MAs, psychological level). Divergences include weak volume during the rally and KDJ nearing overbought territory, urging caution. A break above $143.50 may target $146, while failure could retreat to $140 support. Probabilistically, the confluence of moving averages and MACD supports upside continuation if $140 holds.