Stock of the day: McDonald’s

In today’s analysis we’re looking at McDonald’s, and surprisingly for the first time. McDonald’s was in the spotlight recently as it was one of a few global companies, which initially refused to close their business in Russia. They eventually made the decision to shut their stores but their reputation was already harmed.

Technically, MCD is definitely in a long-term bearish trend. Interestingly it started precisely at the beginning of the year. So far, in the first two and a half months. MCD came back to a price last seen exactly year ago. So, a year of uptrend was cancelled in around 60 days, nice.

The whole bearish trend started with a very handsome Head and Shoulders pattern (yellow). Another proof that this formation simply works. Yesterday, MCD finally recorded a bullish session. The place where that happened was not random though. The price bounced from a crucial horizontal support at 217 USD (blue). This was an important resistance in December 2020 and during the first two months of 2021.

With all this, the current situation is pretty simple. We do have a short-term positive sentiment and general hope for a small bullish correction and still a negative sentiment in the long-term. If the price breaks the blue support, it will be a new short-term sell signal with the potential target at the 200 USD support (green). This scenario is really likely to happen.