Technical Analysis of Yum Stock for Put Selling Chance

Yum Stock has been in my portfolio since 2009. Every year I have earned double-digit returns, but this year I have earned as much as I did in the past 3 years combined. The volatility has increased in Yum Stock which, when combined with the Bollinger Bands Strategy Trade, has brought in significant returns for 2012.

With the news out of China this morning that authorities are closing down two farms due to health concerns, both of which supplied Yum Brands and McDonalds restaurants with chickens, YUM Stock continued its decline falling briefly below $65.83.

Collapse Of Yum Stock

The collapse of Yum Stock since its high on November 29 is now at 11.3%. The chart below shows the decline in YUM Stock.

A – Accumulation – Distribution Technical Indicator

A, in the chart marks the accumulation and distribution technical indicator for Yum Stock and as you can see there is more selling than buying since the collapse started. It has not changed which is beginning to show signs of the start of a possible longer-term bear for the stock.

YUM Stock recent collapse Dec 20 2012

The collapse of YUM Stock since Nov 29 2012

This morning I entered a new Put Selling trade on YUM Stock.

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Review Yum Stock 2012 Trades

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