Stock of the day: McDonald’s

By Tomasz Wisniewski|

Published: June 12 2023, 12:32 GMT+0

Stock of the day: McDonald’s

In today’s Stock of the Day analysis, we turn our attention to McDonald’s, where a compelling buy signal emerged on the chart last Thursday. This signal could significantly impact the company’s market position and serve as a decisive factor for potential investors.  In our last analysis on May 23rd, we observed the commencement of a bearish correction. Here’s a flashback to what we stated then:

“Considering potential targets, it seems reasonable to anticipate that the long-term upward trendline (depicted in blue) could serve as a target. The likelihood of reaching this level is quite high.”

In retrospect, our prediction was indeed accurate as the price ultimately navigated towards the long-term uptrend line. What happened next was noteworthy. On Thursday, the price not only reached the uptrend line but bounced off it, exhibiting a striking bullish candlestick pattern known as the bullish engulfing. This pattern is a classic and robust sign of potential upward price momentum.

In the wake of this bounce, the stock remains above the uptrend line, suggesting the bearish correction may have reached its end and a new bullish wave could be on the horizon. Consequently, my current sentiment on McDonald’s is positive and this stance will remain as long as the price stays above the uptrend line.

While a breakout is always possible in any market situation, it appears to be increasingly unlikely under current conditions. All in all, McDonald’s is certainly a stock to keep an eye on for those looking to capitalize on this bullish trend.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-mcdonald-s-4

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