DTT Buzz

Yesterday, I noted a really nice uptrend channel in Yum! Brands Inc. (NYSE: YUM). The uptrend channel support was being tested in a big way when I first glanced at the formation. By the end of the session, YUM had broken the support level and closed below it.

The action in YUM is moderately bearish at this point, but could result in some heavy downside pressure. Aside from the channel support break, there's a small double top formation best seen on the 30 day chart (below). The neckline of this formation resides at 39.50, and a break will likely result in a strong downside move.

We have YUM on our Swing & Options watch list. If you would like to participate in a potential trade suggestion on YUM, call 866-232-9872 and request a membership to our Premium Service today!!

Happy Trading,

Nick Fenton

Sr. Trade Analyst