Yum Brands Tests Investors For Rare Quality: Patience
Posted on June 22, 2012 at 16:50 PM EDT
When a stock undercuts the low of a previous base, the count is reset. This is important because a stock breaking out of a first- or second-stage base has a much better chance of success than those clearing a later-stage pattern. In October, Yum Brands (YUM) shaped a double bottom with handle that undercut the low of a flat base completed in late June. The action established the double bottom as a first-stage base. The middle peak plus 10 cents --