Price action on Yum China (which is the China business of KFC, Pizza Hut in China) has created a bear trap to lure in retail traders who are thinking of shorting YUMC. Price action has taken out stop losses of retail who have placed stop losses below previous swing low, and has formed with a bullish green hammer on Thursday's trading session.
If follow up price action on Friday (Dec 1st) can push above previous close, enter a buy stop limit at around $43.25. Attach a stop loss of $40.25 if the price breaks below.
Morningstar carries a fair value of $80 for Yum China.
@TigerStars
@CaptainTiger
$Yum China Holdings, Inc.(YUMC)$
$SPDR S&P 500 ETF Trust(SPY)$ $Invesco QQQ Trust-ETF(QQQ)$
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Comments
I like your idea of entering a buy stop limit at $43.25. How do you determine these price levels?
Nice analysis on Yum China's price action! I was almost caught in that bear trap.
I'm curious to see how Friday's follow-up price action will play out.
Do you see any other potential traps in the near future?