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February 5 Chart of the Day - Yum! Brands

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Yum! Brands (YUM) operates KFC, Pizza Hut, Taco Bell, and The Habit Burger Grill, except in China, where the brands are operated by a separate company, Yum China.

The company reports earnings Wednesday before the bell and since price is not trading at or near all time highs (ATH) like so many other equities we thought we'd take a look from a price action technical analysis perspective.

On the monthly chart we can see price is well off its $143.25 ATH set a little less than a year ago. 

Trading around $127 earlier today we can see two sided price action for over two decades.

Since the $54.95 pandemic lows back in 2020 price has been making a series of higher highs and higher lows. With its last definitive lower lower at $115.53 investors are hoping that the uptrend can continue and that earnings can be the catalyst for that.

Down on the weekly chart price is in a familiar area between $125 -$130 and has been cycling within a defined up channel.

Should price decide to drift lower from its current position we've used support/resistance and bull Fibonacci retracement levels to identify potential downside levels of interest. However, should the bulls push price higher they could be met with possible overhead resistance also in the form of prior support/resistance and a bear Fibonacci this time.

From this information, both traders and investors can formulate plans to fit their respective styles.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

Take a look at the charts and let us know what you think.  

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