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February 22, 2023
A quick look at yesterday: after closing the previous trading day at $131.44 and dropping to $130.19, Yum, a fast food corporation operating the KFC, Pizza Hut and Taco Bell brands, closed yesterday at $130.61. By the end of the session, Yum! Brands gave up a total of 0.63%.
United States FOMC Meeting Minutes is next today at 19:00 UTC.
Amid the market gloom, United States Existing Home Sales (Jan) came out at 4 million, while a consensus of analysts was expecting 4 million. United States 2-Year Note Auction released yesterday at 18:00 UTC with a figure of 4.673, while the previous figure was 4.139. United States Existing Home Sales improved upon its previous reading of -2.2% with a new data release of -0.7%.
Trend-following investors would be interested to note that despite being in the red so far in the current trading session, Yum! Brands Inc peaked above its 10 day Simple Moving Average around $131.11 — typically an early indicator of a new bullish trend beginning to emerge. According to asset volatility analysis, Yum! Brands's upper Bollinger Band® is at $133.08 which indicates a further downward move may follow. Support/Resistance levels obtained from chart analysis indicate that Yum! Brands could begin to recover as it approaches significant support, now 47 cents away from $130.14. Dipping below could be an indication that further losses are ahead.
Overall, the technical outlook suggests Yum! Brands is likely to remain muted for the immediate future, with no clear-cut direction.
Yum! Brands was not the only decliner in the consumer discretionary sector; Home Depot closed at $295.5 (down 7.06%). Lowe's went down 5.12%, closed at $212.75. Alibaba went down to $95.1, losing 4.91% after it closed at $100 yesterday.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as United States Crude Oil Inventories projected to decline to 1.17 million while previous data was 16.28 million; data will be released tomorrow at 16:00 UTC. As things stand, upcoming United States Initial Jobless Claims data is projected to fall short of market expectations with newly published data of 200,000, following on from the preceding figure of 194,000. New data is set to be published tomorrow at 13:30 UTC.
Furthermore, United States GDP is expected tomorrow at 13:30 UTC.
The stock has been trending positively for about 4 months. The US fast food company is now trading 24.88% above the significant low ($105.25) it slumped to 4 months ago.
