Stock of the day: McDonald’s

In today’s Stock of the Day, let’s take a closer look at McDonald’s, which has entered a sharp downtrend after a failed attempt to break above key resistance. Last week saw a bearish setup emerge, highlighted by a false breakout above the orange horizontal resistance at the $300 psychological barrier. This breakout, marked by the yellow rectangle, initially looked promising as the price moved higher at the end of September and even tested the level as a new support. However, this move ultimately lost steam, and the price has since dropped back below the support level, signaling a shift in sentiment.

This false breakout now adds a distinctly negative tone to McDonald’s technical outlook. The price is once again trading within a sideways trend, a rectangle pattern that has confined the stock for some time. As long as McDonald’s stays below this $300 resistance, the bearish sentiment holds, and the price could potentially head toward the lower boundary of this formation, around $247. The setup suggests we may see further downward movement unless the stock manages to reclaim the $300 level.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-mcdonald-s-2-1