Yum Brands (YUM) lowered 2015 EPS guidance and issued a negative preannouncement on its China business, but analysts defended the stock, stating that the news was already more than priced into the shares. Stifel kept a buy rating on YUM, but lowered its price target on the shares to $100 from $105.
Yum is currently trading at $75.03 in a pullback just above its 200 period SMA, and is resting on a 38.2% Fibonacci ratio retracement of the October 16 – December 4, 2014 low-to-high swing. A move higher from this level would have a short-term target at $76.10.
A move lower to $73.94 would represent a 50% pullback, and a significant technical support level. A bounce from this retracement would initially target the 200 period SMA overhead resistance at $75.03.
$72.85 is another major downside price support, as well as 61.8% Fib retracement, and 50 day SMA support. A bounce from this support would target $72.85.