Stock of the Day: McDonald’s

Today’s stock of the day is McDonald’s, which delivered a strong performance throughout February.

From a technical perspective, the key structure on the chart is an ascending triangle pattern. The formation is defined by a rising red trendline acting as dynamic support and a blue horizontal resistance that capped the upside for several months.

At the beginning of February, the price finally broke above that horizontal resistance. After the breakout, the market returned to test the level from above, confirming it as support. This successful retest triggered another upswing, allowing McDonald’s to finish February near long-term highs.

March has brought a modest correction. The price is currently moving lower and testing the rising trendline of the triangle again, together with the horizontal support around $320.

This area is now the key technical level. As long as the price remains above the $320 support, the overall sentiment stays positive and the bullish structure remains intact.

However, if the price closes a day below this support, it would invalidate the bullish setup and generate a signal to go short.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-mcdonald-s-11-1