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Friday, January 25, 2019

YUM Yum! Brands Monthly Chart; Overbot; Rising Wedge; Negative Divergence; Upper Band Violation


Yum! Brands shareholders are about to start puking from some late-night Taco Bell. Other YUM investors experience indigestion from their pizza at Pizza Hut. The fried chicken at KFC is no longer tasty. YUM is a remarkable story at 15 when the Federal Reserve decided to implement QE1 March 2009 to save the stock market and protect America's wealthy class. A move from 15 to 93 is a big 520% gain over the last decade; a six-bagger.

Well, all good things come to an end. In a few months, YUM shareholders will be drowning their troubles with liquor and then pass-out on the restaurant's dirty linoleum floor. Investors will be drowning their sorrows as the stock price languishes all year long. YUM is about to have a religious experience. The monthly and weekly charts are in negative divergence across all indicators. In the monthly above, the RSI and stochastics are overbot agreeable to a pullback in this time frame. The rising red wedge is bearish.

Price violated the upper band so the middle band at 82 and rising is on the table for starters. Do not be surprised if YUM is at the 60-75 range at the end of the year. Keystone does not have a position right now but has been ready to open a short on YUM this year. Keystone will open a short today and add to that short position going forward. Ideally, shorting above 93.25 should work out very well but Keystone will not wait for this price if it does not come. A short position will be opened in YUM today regardless of the price action. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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