McDonald's 5 - 15% gains possible this weekMCD's has been trading sideways through April but a range of chart divergences and a higher-low pattern show the stock is seeing momentum shift to push higher.
Catalyst: CEO confirmed on Thursday that supply chain is not a problem as others (Wendy's, Costco & others) suffer with COVID-19 outbreaks at packing factories.
Divergences: Both MACD-Histogram and MACD-Lines are showing bullish divergences, although the lines have yet to cross (Mon or Tue for that). Stochastic is read to move higher having just moved above 20%, and Elder's Force Index is showing a longer term higher low in-line with the bar-chart's own.
Risks: Hourly and weekly timeframes are not looking as strong.
Tactics: look for an open on Monday higher than Friday's open, which will confirm the markets bullish outlook.
Targets: 193 (+5%) coincides with ~200 MA and peak volume profile, beyond there, 205-210 (~15%) to test February's highs
Stops: below 175 (-4%), breaking of recent support whilst its been trading sideways.