Last week was a stellar one for McDonald’s which saw the stock close with a wide spread up candle on solid volume, and once again reinforcing the bullish sentiment we highlighted back in May when it was trading at $197 and wrote at the time there was plenty more to come.
Friday’s price action was key as it broke through the minor resistance at $218 per share which now provides an excellent platform of support following the congestion phase of July. More significantly ahead is a low volume node on the volume point of control histogram to the right of the chart, and this in itself should help the stock continue higher, through $222 in the near future.
For a longer-term perspective, we now move to the weekly chart, and here too, we have a positive picture for the stock, with volume falling away dramatically through to $225. Note the trend monitor indicator which has remained firmly blue throughout this extended bullish trend, and what is significant for McDonald’s, and reinforces the bullish sentiment, is the lack of reversals when the major indices are selling off sharply.
By Anna Coulling
Charts from NinjaTrader and indicators from Quantum Trading