McDonald’s: Trendline Breakout Before Earnings
McDonald’s has slid for about three months, but it may be attempting a breakout as earnings loom.
The first pattern on today’s chart is the series of lower highs since October. MCD pushed above that falling trendline in late January and has stayed above it since. That may suggest an intermediate-term decline has ended.
Second is the August 16 weekly close of $278.49. The hamburger giant tested and held that level a few weeks ago. The bounce coincidentally occurred near the 200-day simple moving average (SMA).
Speaking of moving averages, the 50-day SMA had a “golden cross” above the 200-day SMA in September. Is the longer-term trend getting more bullish?
Next, the 8-day exponential moving average (EMA) is above the 21-day (EMA). MACD is also rising. Both of those signals may be consistent with a short-term uptrend.
Quarterly results are due Monday morning.
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The first pattern on today’s chart is the series of lower highs since October. MCD pushed above that falling trendline in late January and has stayed above it since. That may suggest an intermediate-term decline has ended.
Second is the August 16 weekly close of $278.49. The hamburger giant tested and held that level a few weeks ago. The bounce coincidentally occurred near the 200-day simple moving average (SMA).
Speaking of moving averages, the 50-day SMA had a “golden cross” above the 200-day SMA in September. Is the longer-term trend getting more bullish?
Next, the 8-day exponential moving average (EMA) is above the 21-day (EMA). MACD is also rising. Both of those signals may be consistent with a short-term uptrend.
Quarterly results are due Monday morning.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. If you're born to trade, we could be for you. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.