Selling Looks Appetising As Yum Brands Expected To Post Disappointing Earnings
Yum Brands Inc. is due to release its second-quarter earnings report on Wednesday (13/7) after the market close. Analysts expect that the fast-food restaurant chains may report a lacklustre quarter because of value-based pricing environment across the quick-service industry and the increasing number of competitors both domestically and abroad. The company is estimated to report earnings of 74 cents per share, compared with the EPS of 69 cents for the same period last year. Additionally, revenue is forecast to come in at $3.09 billion, down 1% from $3.12 billion last year. On the hourly chart, the chance of a disappointing quarter report drove investors away with the stock moving downwards after coming up against the resistance at 87.36. ADX (14) is slipping to 39.3378, suggesting that the bear is stepping in. Moreover, RSI (14) has ticked down to 61.3916, confirming that the bullish trend is wearing out.
Sell stop at 86.08, Take profit at 85.84, Stop loss at 86.20