YUM CHINA HOLDINGS INC (NYSE:YUMC) may be ready to breakout.

Our stock screener has spotted YUM CHINA HOLDINGS INC (NYSE:YUMC) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:YUMC.

Technical Analysis Observations

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

Overall YUMC gets a technical rating of 9 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, YUMC is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• YUMC is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 73% of 135 stocks in the same industry.
• YUMC is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so YUMC slightly outperforms the market at the moment.
• In the last month YUMC has a been trading in the 45.75 - 50.62 range, which is quite wide. It is currently trading near the high of this range.
• Looking at the yearly performance, YUMC did better than 83% of all other stocks. However, this overall performance is mostly based on the strong move around 4 months ago.

Check the latest full technical report of YUMC for a complete technical analysis.

Why is NYSE:YUMC a setup?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NYSE:YUMC is 8:

YUMC has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 49.65. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 49.30, a Stop Loss order could be placed below this zone.

Trading setups like NYSE:YUMC

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

More breakout setups can be found in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.