Morning Trend | YUM China sees reduced volume in follow-up, large consumption sector rotation boosts sentiment

YUM China (9987.HK) has shown a pattern of shrinking volume and rising prices in recent trading days. After stabilizing from the bottom, the stock price has been oscillating upwards around the 10-day and 20-day moving averages, with the MACD golden cross signal maintained, effectively boosting short-term bullish sentiment. Yesterday, as the large consumer sector rotated and heated up, YUM China followed suit, roughly recovering some of the recent pullback losses, with significant increases in market funding attention. Market analysis indicates that the current buying power is primarily driven by institutional investors, and the market's fluctuations have prevented volume from expanding sufficiently. YUM China's fundamentals remain solid, with positive news released regarding new product development, digital upgrades, and store expansion, forming a bottom-line expectation for performance. However, the competition in the restaurant sector is fierce, and the battle for market share remains a major concern. In the short term, insufficient volume release limits sustained strong advances. If there is a volume breakout that surpasses key resistance levels in the future, it will drive a stronger upward trend. The short-term risk lies in the ultra-short fluctuations caused by fund switching during sector rotations. If funds focus on hot rotations, there may be severe intraday volatility. In terms of operations, it is recommended to primarily position for dips, following up in batches with volume support, and it is not advisable to heavily chase after price increases. Close attention should be paid to policies, consumer expectations, and the flow of funds within sectors. Considering the current structure and sentiment, YUM China maintains a bullish pattern, but whether its ability to push forward can be sustained still requires support from trading volume and fundamentals