Taco Bell Operator Won't Be Buying Dinner Anytime Soon
The multinational fast food corporation behind Taco Bell and Pizza Hut seems headed toward further declines.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Yum! Brands YUM owns Taco Bell, Pizza Hut, KFC and the fast-casual brand The Habit Burger Grill. I have tried a number of these divisions but I haven't become a "regular." The charts of YUM have begun to weaken, so traders may want to find some other place for dinner tonight.
Let's check out the charts.
In this daily bar chart of YUM below, I can see that prices have declined sharply this month. YUM failed to break above the $142 to $143 area since March 2024 and now prices are testing the rising 200-day moving average line. Trading volume has been active since February. The On-Balance-Volume (OBV) line has been mostly moving lower since early March. The Moving Average Convergence Divergence (MACD) has weakened and is now below the zero line.
In this weekly Japanese candlestick chart of YUM below, I can see that prices look poised for further weakness. YUM trades down to the 40-week moving average line. The weekly OBV line has struggled the past five months. The MACD oscillator has crossed to the downside for a take profit sell signal.
In this daily Point and Figure chart of YUM below, I can see a downside price target in the $121 area.
In this weekly Point and Figure chart of YUM below, I can see the same downside price target of $121 but the topping pattern looks like it could generate a deeper pullback than $121.
Bottom line strategy: If YUM makes two consecutive closes below the 200-day moving average line, then we are likely to see further declines.
Employees of TheStreet are prohibited from trading individual securities.