McDonald’s Sneaks Toward a Breakout
McDonald’s has been inert for most of 2021, but now it's showing signs of a breakout.
First, MCD established a new closing high on Friday. Aside from
Salesforce.com, it was the only member of the 
Dow Jones Industrial Average to achieve that feat.
It also happened despite making a lower low on Monday. Buyers quickly materialized to defend the burger giant, resulting in a bullish outside week:
Third, MCD has been coiling for a potential breakout since July and holding support above its 50-day simple moving average (SMA).
Next, this year’s price action has mostly represented a consolidation above the October 2020 high. Old resistance could now be established as new support.
Finally, MACD has turned positive in the last two weeks.
The bigger picture could also be helpful because reopening stocks jumped last week as coronavirus infections declined. There was an additional catalyst in the casual-dining space after
Darden Restaurant (parent of Olive Garden) hiked its guidance.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
First, MCD established a new closing high on Friday. Aside from
Salesforce.com, it was the only member of the Dow Jones Industrial Average to achieve that feat.It also happened despite making a lower low on Monday. Buyers quickly materialized to defend the burger giant, resulting in a bullish outside week:
Third, MCD has been coiling for a potential breakout since July and holding support above its 50-day simple moving average (SMA).
Next, this year’s price action has mostly represented a consolidation above the October 2020 high. Old resistance could now be established as new support.
Finally, MACD has turned positive in the last two weeks.
The bigger picture could also be helpful because reopening stocks jumped last week as coronavirus infections declined. There was an additional catalyst in the casual-dining space after
Darden Restaurant (parent of Olive Garden) hiked its guidance. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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