Stock of the day: McDonald’s

In today’s technical analysis, let’s take a closer look at McDonald’s.

The stock has been trading sideways for several weeks, coiling into a narrowing range and building pressure for a bigger breakout. Technically speaking, what we’re observing is a symmetrical triangle pattern, formed by a dynamic downtrend line and a dynamic support line, both marked in black on the chart.

This kind of consolidation typically precedes a sharp move in either direction. As traders, the best strategy here is to remain patient and wait for a breakout from this triangle. A decisive move above the upper boundary would signal a new bullish phase and invite long positions. On the other hand, a drop below the lower boundary would activate a sell signal and suggest a deeper correction is underway.

At this point, the setup is neutral, but the breakout—whichever direction it comes—will be key to the next major move in McDonald’s stock.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-mcdonald-s-5-1