Yum China may rise to 58.50 - 61.10

Our pivot point is at 45.5.

Our preference

The upside prevails as long as 45.5 is support.

Alternative scenario

The downside breakout of 45.5 would call for 41.2 and 38.7.

Comment

The RSI is above 70. It could mean either that the stock is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the stock is trading above both its 20 and 50 day moving average (respectively at 38.785 and 35.0856).

Supports and resistances

63.7 **

61.1 *

58.5 **

55.8

49.24 (USD-last)

47.2

45.5 **

41.2 *

38.7 **

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