Yum China may fall to 28.60 - 29.50

Our pivot point stands at 33.7.

Our preference

The downside prevails as long as 33.7 is resistance.

Alternative scenario

The upside breakout of 33.7 would call for 35.1 and 36.

Comment

The RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look for bullish divergence in this case). The MACD is negative and below its signal line. The configuration is negative. Moreover, the share stands below its 20 and 50 day moving average (respectively at 34.943 and 36.8248). Finally, Yum China is trading below its lower daily Bollinger band (standing at 32.67).

Supports and resistances

36 **

35.1 *

33.7 **

33.1

32.32 (USD-last)

30.3

29.5 **

28.6 *

27.8 **

Number of asterisks represents the strength of support and resistance levels.