Yum Brands Serves Up A Golden Cross, But Will The Rally Hold?

Yum Brands Inc. YUM has just whipped up a delicious technical feat with its latest Golden Cross—a bullish signal that has investors licking their chops!

This bullish crossover happens when a stock’s short-term moving average rises above its long-term moving average, hinting at a potential upward trajectory.

Chart created using Benzinga Pro

But is this the start of a sustained rally or just a fleeting snack?

YUM Stock’s Golden Cross – The Current Recipe For Success

As Yum Brands cooks up some impressive gains, the stock is up 5.40% year-to-date and has sizzled with a 10.09% increase over the past year.

Currently priced at $136.35, YUM stock is experiencing a mixed trend. While it's sitting above its 20-day SMA of $134.63 and 50-day SMA of $134.94, signaling bullish potential, the eight-day SMA at $137.89 suggests a bit of bearish pressure.

The 200-day SMA is also friendly at $134.58, reinforcing the overall positive sentiment.

Chart created using Benzinga Pro

Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a value of 1.09, which suggests a bullish outlook. However, with the Relative Strength Index (RSI) at 52.83, YUM stock remains in neutral territory—leaving investors to question whether the stock will maintain momentum or enter a cooling period.

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Pizza Hut's Celebration Adds Flavor

In a timely twist, Yum Brands' subsidiary, Pizza Hut, is stirring up excitement by marking the 40th anniversary of its beloved BOOK IT! program.

This initiative, which has sparked a passion for reading in children since 1984, is giving away one million free personal pan pizzas during National Book Month this October.

With this offer, Pizza Hut is not only promoting literacy, but also enhancing its brand visibility—making it a win-win for both the company and its customers.

Looking Ahead

As Yum Brands marks a Golden Cross and reinforces its commitment to education through Pizza Hut, investors are weighing the implications.

While technical indicators point to potential upward momentum for YUM stock, current selling pressure raises concerns. The question remains: will the stock continue its upward trend, or will it encounter challenges ahead?

Only time will tell, but Yum Brands' outlook remains promising. Investors should stay attentive as the company's next moves unfold.

Read Next:

• Jim Cramer Calls Starbucks A ‘Stimulus Play’: Golden Cross Signals Bullish Run Ahead

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