Yum! Brands Inc. YUM, the parent company of KFC, Pizza Hut, and Taco Bell, is approaching a significant milestone known as the Golden Cross. This bullish technical indicator may hint at a recovery in the stock’s performance.

The stock has experienced a decline of 3.9% over the past month. However, with recent upgrades and growth strategies, there appears to be potential for renewed upward momentum.

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YUM Stock Charts: A Mixed Technical Outlook with Golden Cross on the Horizon

Currently priced at $134.16, YUM stock is positioned just below important moving averages, resulting in a mixed technical outlook:

• Eight-day SMA: Bullish signal at $133.81, suggesting slight upward movement.
• 20-day, 50-day, and 200-day SMAs: All above the current price, indicating bearish trends.
• MACD: A negative 0.55, further supporting bearish sentiment.
• RSI: Neutral at 46.54, showing the stock is neither overbought nor oversold.

Despite these indicators, the eight-day SMA trending upward indicates possible buying interest. The anticipated Golden Cross, which occurs when the 50-day SMA crosses above the 200-day SMA, holds the potential to spark renewed bullish sentiment.

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What YUM Stock Investors Should Keep in Mind

Investors should monitor the potential Golden Cross closely, as it could signify an opportunity to capitalize on Yum’s recovery trajectory. Argus has projected a long-term earnings growth rate of 10%, lending further optimism. If positive momentum persists, YUM stock could break through resistance and trend towards the $155 target.

Though some skeptics note mixed signals in the short term, Yum’s combination of technical signs and fundamental growth makes it a stock to watch. The Golden Cross could be the push Yum needs for a turnaround. Investors won’t have to wait long to see if this prediction comes to fruition.

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