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Swing Trade Idea (YUM) – September 07, 2023

Our bearish trade for Thursday, September 7th is Yum! Brands Inc. (YUM). YUM is part of the  Consumer Discretionary Sector, which has performed at -2.90% over the last month, with YUM underperforming relative to its sector at -6.09% over the same period.

YUM failed to break above a key area of $130 and is continuing its downtrend. As Strength continues to decrease, it will most likely break below support at $125, with the next support at around $115. YUM also broke below a trend channel which underscores our bearish thesis on this trade.

As a close, if YUM were to trade above $130 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $2.50.