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May 23, 2023
A quick look at yesterday: the US fast food company plunged into the red after losing 2.44%, declining to $134.91.
Yum! Brands Inc made an initial break below its 21 day Simple Moving Average at $138.47, a possible indication of a forthcoming negative trend. After descending below strong Fibonacci support at $135.61, market bears have earmarked $133.88 as the next downside target. On the other hand, note that Yum! Brands could begin to recover as it approaches significant support, now $1.56 away from $133.35. Dipping below could be an indication that further losses are ahead. Yum! Brands's lower Bollinger Band® is at $134.17, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for Yum! Brands.
Yum! Brands was not the only decliner in the consumer discretionary sector; Nike closed at $110.18 (down 4%). McDonald's closed at $289.35 (down 2.1%).
On the other hand, positive performances could be seen by looking at other consumer discretionary stocks as Tesla was up 4.85%.
Looking ahead, ongoing depreciation may be prolonged as tomorrow at 14:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to -920,000 from the preceding figure of 5 million.
Furthermore, United States New Home Sales (Apr) will be released today at 14:00 UTC. United States Services PMI is expected today at 13:45 UTC.
The US fast food company reached a significant high of $142.9 around 21 days ago but has lost 3.23% since then.
