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May 05, 2023
Yum! Brands is in the midst of a 3 day downtrend. Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. From an earlier low of $136.04, the US fast food company is on track to end the session around $137.52 after gaining $1.2 compared to last trading session's $136.32 (0.88%).
Yum! Brands's uptick comes amid good United States macroeconomic data released during the day — data for United States Average Hourly Earnings published today at 12:30 UTC came out at 0.5%, beating projections of 0.3% and showing improvement over the preceding figure of 0.3%. United States Non Farm Payrolls beat analyst expectations of 180,000 and the previous reading of 165,000 with new data of 253,000. United States Unemployment Rate came out at 3.4, better than analyst estimates of 3.6 and improving upon the previous reading of 3.5.
Yum! Brands Inc made an initial breakout above its 21 day Simple Moving Average at $136.65, a potential indicator of a newly emerging bullish phase. Yum! Brands is currently trading around the $137 Fibonacci resistance level. In contrast, Yum! Brands broke through the $137.41 resistance and climbed 11 cents above it.
Following today's unexpected gains, extensive multifactorial technical analysis forecasts Yum! Brands to buck against its prevailing downtrend and begin to turn higher in the short term. With all probabilities considered, the Yum, a fast food corporation operating the KFC, Pizza Hut and Taco Bell brands, is expected to pick up significant bullish sentiment in the coming days.
This rally in Yum! Brands's share price coincides with other consumer discretionary stocks as Walt Disney is up 3.25% to $100.61. Tesla added 5.45% to its value, now trading at $169.98.
The stock has been trending positively for about a month. Yum, a fast food corporation operating the KFC, Pizza Hut and Taco Bell brands, has fallen back around 4.6% over the past 3 days, from a notable high of $142.9.
