Is McDonald’s Breaking Out?McDonald’s is seldom an exiting stock. That’s been especially true lately, but now the hamburger giant could be breaking out.
The first pattern on today’s chart is the long descending channel that started in November after MCD broke out to new highs. Notice how prices failed to make a lower low on March 13 and made a higher high today. That may suggest the consolidation phase is nearing an end.
Second, the stock oscillated and either side of the 50-day simple moving average (SMA) during most of the consolidation. But it’s remained above that SMA for over a week. Is the intermediate-term trend turning more bullish?
Next, MACD has turned positive.
Finally, Bollinger Band Width narrowed as MCD shuffled in the falling channel. That may create the potential for price movement to expand if the breakout is confirmed.
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