Stock of the day: McDonald’s

McDonald’s stock, despite experiencing a bearish correction in the early days of May, continues to show signs of a promising future. This comes after a steady uptrend that has been evident since October 2022. The correction only led to the price testing the long-term uptrend line and the horizontal support at $280 in June – nothing that could set off major alarms for investors.

Then, an encouraging development arose on Friday. A decisive movement to the upside broke the mid-term resistance connecting the top from May and from the middle of June. This resistance, marked with a red color, represents the threshold of the bearish correction. With the price closing a day above the red line, a buy signal was triggered, offering a glimmer of hope for the price to ascend to new long-term highs.

Investors and market watchers should note that the sentiment surrounding McDonald’s stock will remain positive as long as the price stays above the red line. A plunge below the red line could potentially trigger a double top formation, though the probability of this occurrence is currently low.

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