Is McDonald’s Breaking Out?
McDonald’s is seldom an exiting stock. That’s been especially true lately, but now the hamburger giant could be breaking out.
The first pattern on today’s chart is the long descending channel that started in November after MCD broke out to new highs. Notice how prices failed to make a lower low on March 13 and made a higher high today. That may suggest the consolidation phase is nearing an end.
Second, the stock oscillated and either side of the 50-day simple moving average (SMA) during most of the consolidation. But it’s remained above that SMA for over a week. Is the intermediate-term trend turning more bullish?
Next, MACD has turned positive.
Finally, Bollinger Band Width narrowed as MCD shuffled in the falling channel. That may create the potential for price movement to expand if the breakout is confirmed.
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The first pattern on today’s chart is the long descending channel that started in November after MCD broke out to new highs. Notice how prices failed to make a lower low on March 13 and made a higher high today. That may suggest the consolidation phase is nearing an end.
Second, the stock oscillated and either side of the 50-day simple moving average (SMA) during most of the consolidation. But it’s remained above that SMA for over a week. Is the intermediate-term trend turning more bullish?
Next, MACD has turned positive.
Finally, Bollinger Band Width narrowed as MCD shuffled in the falling channel. That may create the potential for price movement to expand if the breakout is confirmed.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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