Good Strong Price Action For MCD

MCD weekly chartMCD is a stock I follow closely as it is one I consider to be a bellweather of many things, and not least the Big Mac index which is always an interesting read for currency traders.

For longer term stock investors and traders, this was one I referenced four weeks ago on the 29th March:

Here’s an excerpt from that post:

Since then, the price has continued to rise steadily, and in this week’s trading session we are now testing a key level in the $190 area on the daily chart. The important levels this week have been at $186 and $188.20 and defined with the accumulation and distribution indicators with the red and blue dashed lines respectively. Both of these levels have now been breached, with recent strong earnings data also providing additional momentum. Both technical and fundamental analysis signals continue to point to a further move higher, as we wait for a further round of earnings next month.

And indeed this has been the case with the stock rising steadily since then to currently trade at $197.42 at time of writing with two wide spread up candles supported with rising volume. From a fundamental perspective, McDonalds is scheduled to post quarterly earnings tomorrow ahead of the market open and it will be interesting to see if the stock can take out the psychological $200 price level.

By Anna Coulling