Stock of the Day: McDonald’s

And now let’s move to today’s stock of the day and take a look at McDonald’s. McDonald’s is currently trading at an absolutely key resistance level, but to properly assess the situation, it’s important to zoom out and look at the broader technical picture.

On the daily chart, the dominant structure is an ascending triangle formation. The horizontal resistance sits around the 322 dollar area and represents the upper boundary of this pattern. This level was first established back in March and later confirmed in May and November. Now, in February, price is once again testing this zone, reinforcing its technical importance. Each test adds pressure to the level and increases the relevance of the setup.

The structure of the pattern is clearly bullish. The ascending triangle is defined by the orange horizontal resistance and the blue rising trendline, which acts as dynamic support and reflects steadily increasing demand. Higher lows into a flat ceiling indicate that buyers are becoming more aggressive, absorbing supply at progressively higher prices.

Ascending triangles are generally continuation patterns and statistically favor a breakout to the upside. In this case, a daily close above the orange resistance area around 322 would confirm the breakout and validate the bullish scenario. Such a move would trigger a technical signal to the upside and open the door for the start of a new bullish wave on McDonald’s.

Until that breakout occurs, price remains compressed within the pattern. But the longer McDonald’s holds above rising support and continues to pressure resistance, the more the balance tilts in favor of the bulls.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-mcdonald-s-6-1