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YUM — Oversold Bullish Reversal

Status: Invalidated

Scanner score: 20.0/100

Why this was flagged

YUM was identified as a bullish technical setup based on the Oversold Bullish Reversal pattern. The scanner found a score of 20.0/100 using trend alignment, momentum, price action, volume, and risk-management rules. Monitor update: Latest daily-chart analysis no longer reports a bullish long setup.

Trade framework

Current price$148.92
Entry zone$148.92 – $150.12
Stop-loss / invalidation$143.44
Target 1$159.88
Target 2$165.37
Reward/risk2.00:1
Suggested holding windowAbout 2–8 trading days; reversal setups should work relatively quickly.
FoundJul 24, 2026 11:04 pm
Potential expirationAug 6, 2026 8:08 pm
Entry plan: Consider a limit order only within the displayed entry zone. If price does not enter that range, skip the trade rather than chasing it.

Position-sizing example

Reference entry$149.52
Planned risk per share$6.08
Example: $100 planned risk16 shares
Example: $250 planned risk41 shares

These examples use the distance between the reference entry and stop-loss. They do not account for commissions, slippage, taxes, overnight gaps, or your personal account size.

Exit plan

  1. Stop-loss: Exit if the stop-loss is reached. Do not move the stop farther away to avoid taking the planned loss.
  2. Target 1: Consider taking partial profit when Target 1 is reached and reducing risk on the remaining shares.
  3. Target 2 or trailing exit: Consider closing the remaining position at Target 2, or use a disciplined trailing stop only if the trend remains strong.
  4. Time exit: Reassess or close a trade that fails to progress within the suggested holding window.

Technical chart

Daily closing price with moving averages and planned trade levels. This chart is a screening aid, not a guarantee of future results.

$140.09$147.78$155.46$163.15$170.84Target 2 $165.37Target 1 $159.88Entry high $150.12Entry low $148.92Stop $143.44Mar 18, 2026Jul 27, 2026
CloseSMA 20EMA 20SMA 50SMA 200Entry zoneStop-lossTargets

$1,000 educational outcome examples

Example reference entry$149.52
Example fractional shares6.69
If Target 1 is reached$1,069.31 value (+6.9%)
If Target 2 is reached$1,105.97 value (+10.6%)
If the stop-loss is reached$959.32 value (-4.1%)

These examples use a $1,000 position and fractional shares at the midpoint of the entry zone. Actual results can differ because of market gaps, fills, spreads, commissions, taxes, slippage, and changing conditions.

Easy explanation for new investors

Why the scanner noticed this stock
The scanner found Yum Brands Inc using a pattern called an Oversold Bullish Reversal. This happens when a stock price has dropped quite a bit and might be ready to turn around and go up. The Relative Strength Index, or RSI, is at 17.51. RSI is a tool that measures if a stock is "oversold," which means it has been sold a lot lately. A low RSI number like this suggests the selling might be slowing down.

What the price plan means
The entry zone is between $148.92 and $150.12. This is the price range where the setup is active. If the price moves up, the first goal is $159.88, and the second goal is $165.36. To manage risk, there is a stop-loss at $143.44. A stop-loss is an automatic instruction to exit a trade if the price drops too low. The reward-to-risk ratio is 2, which means the planned gain is twice as large as the potential loss.

What could make the idea fail
The scanner score is 20 out of 100, which is quite low. Also, the relative volume is 0.54, meaning fewer people are trading this stock than usual. If the price drops below $143.44, the setup is no longer valid.

Important reminder
This information is for educational purposes only and does not represent a recommendation to trade.

Recent news context

This automated review is separate from the technical score. It summarizes recent related articles and does not predict price movement.

Overall context: Caution (High confidence)

Yum! Brands shows mixed signals. On the positive side, the company maintains a capital-light franchise model with robust revenue growth from KFC, Taco Bell, and Pizza Hut, supported by a $4 billion stock repurchase plan and a $0.75 quarterly dividend. However, there is significant recent institutional selling, including stake reductions by First Trust Advisors, Epoch Investment Partners, and Bank of Nova Scotia. Additionally, insiders have sold over $1.9 million in shares. Most notably, federal health officials have linked a parasite outbreak involving shredded lettuce to Taco Bell, with nearly 2,000 cases reported across multiple states.

Potentially supportive context

  • Strong franchise model generating fee and royalty income from KFC, Taco Bell, and Pizza Hut.
  • Implementation of a $4 billion stock repurchase plan and a $0.75 quarterly dividend.
  • Robust revenue growth supported by expanding global networks and digital sales.

Risks and caution items

  • Health concerns involving a parasite outbreak linked to Taco Bell lettuce affecting multiple states.
  • Significant reduction in holdings by several institutional investors during the first quarter.
  • Insider stock sales totaling over $1.9 million in the last quarter.
  • Technical setup indicates an oversold bullish reversal with a low technical score of 20.

Latest reviewed article: Jul 26, 2026 11:11 am

Recent related articles

First Trust Advisors LP Sells 33,754 Shares of Yum! Brands, Inc. $YUMMarketBeat · Jul 26, 2026 · Provider label: Neutral

First Trust Advisors LP reduced its stake in Yum! Brands, Inc. by 7.5% in the first quarter, selling 33,754 shares and now owning 418,752 shares valued at $65.11 million. This comes amidst other institutional investor activities, with some increasing their holdings while…

Yum! Brands stock steadies as franchise growth supports earningsAD HOC NEWS · Jul 26, 2026 · Provider label: Somewhat-Bullish

Yum! Brands' stock performance is buoyed by its expanding global franchise network, including KFC, Taco Bell, and Pizza Hut, demonstrating robust revenue growth and rising system sales. The company's strategy focuses on a capital-light, predominantly franchised model, generating substantial fee and royalty…

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Wingstop's recent five-day "Wing Week" promotion and continued global expansion suggest a strategic shift to boost traffic amidst softer comparable sales. While these initiatives aim to re-energize demand, they introduce risks of deeper discounting and potential erosion of profitability, especially with rising…

FTRK|Fast Track Group|Price:0.479|Chg%:-0.013TradingKey · Jul 26, 2026 · Provider label: Neutral

Fast Track Group (FTRK) is currently trading at $0.479, down 2.64% with a market capitalization of $10.45 million. The company, based in Singapore, specializes in event management and marketing for entertainment, offering services like experiential marketing, artiste endorsement, and large-scale event organization.…

Yum! Brands, Inc. Revenue Breakdown – TRADEGATE:TGRTradingView · Jul 25, 2026 · Provider label: Neutral

This article provides a revenue breakdown for Yum! Brands, Inc. (TRADEGATE:TGR), detailing its top-performing segments and regional contributions. Last year, the company generated €6.99 billion, with KFC being the highest contributor, and the United States accounting for the largest share of revenue.

Yum! Brands, Inc. $YUM Shares Sold by Epoch Investment Partners Inc.MarketBeat · Jul 25, 2026 · Provider label: Neutral

Epoch Investment Partners Inc. reduced its stake in Yum! Brands, Inc. (NYSE:YUM) by 14.0% in the first quarter, selling 141,727 shares to own a total of 870,866 shares. This reduction makes Yum! Brands Epoch's 27th largest holding, valued at $135.4 million. The…

Yum! Brands, Inc. $YUM Shares Sold by Bank of Nova ScotiaMarketBeat · Jul 25, 2026 · Provider label: Neutral

Bank of Nova Scotia reduced its stake in Yum! Brands, Inc. (NYSE:YUM) by 19.7% in the first quarter, selling 49,184 shares and now owning 199,869 shares valued at $31,076,000. Several other institutional investors also adjusted their holdings. The article also details analyst…

Important: Some returned articles may describe competitors, industry conditions, or related companies. Open the source before relying on an article.

Scanner confirmations

  • RSI is near oversold territory with bullish candle confirmation.
Important: This is an automated educational screening result, not a buy recommendation. Confirm price, liquidity, earnings dates, news, and your own risk before entering any trade.
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