Yum Yum; Bad Yum

Despite a sharp selloff in China stocks yesterday, the Yum! Brands China spinoff, YUMC, looks to be setting back up on the long side with a far superior daily chart to its parent company. 

The first daily chart, below, is the main company which owns the KFC, Taco Bell, and Pizza Hut fast food franchise brands. After a 2016 spinoff, YUMC obviously focuses on the China franchises, with KFC, for example, being a wildly popular brand there. 

The original YUM, first below, is breaking down from a rising channel and likely can be seen as a short into weak bounces.

However, YUMC, second below, is bull-flagging after a triangle consolidation breakout, with $40 serving as a logical long trigger. 

We know some China names like BABA BIDU have been enjoying outstanding years, thus far. And YUMC  may be a lower beta way to participate in the fun with the peace of mind of being long a dominant global brand which still has plenty of growth ahead, even as the U.S. franchises likely got a bit too ahead of themselves.