Indications Suggest MCDONALD'S CORP (NYSE:MCD) Could Be on the Verge of a Breakout.

Our stock screener has flagged MCDONALD'S CORP (NYSE:MCD) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:MCD for potential movement.

Deciphering the Technical Picture of MCD

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to MCD. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• Looking at the yearly performance, MCD did better than 85% of all other stocks. We also observe that the gains produced by MCD over the past year are nicely spread over this period.
• MCD is part of the Hotels, Restaurants & Leisure industry. There are 136 other stocks in this industry. MCD outperforms 79% of them.
• MCD is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so MCD slightly outperforms the market at the moment.
• In the last month MCD has a been trading in the 290.50 - 321.78 range, which is quite wide. It is currently trading near the high of this range.

Our latest full technical report of MCD contains the most current technical analsysis.

How do we evaluate the setup for MCD?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. MCD currently has a 8 as setup rating:

MCD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 315.58. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 311.26, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like MCD

To potentially initiate a trade, it is common practice to wait for the stock to break out of the consolidation zone. This breakout signifies a potential upward movement, and traders may enter the stock at that point. Conversely, if the stock falls back below the consolidation zone, it may be sold at a loss.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.