McDonald's Stock Crosses $300
McDonald's stock has surged over 4.5%, reinforcing its bullish momentum, which had been paused after a prolonged neutral phase. Today’s earnings report has been a key driver, as the company posted earnings per share of $2.83, in line with forecasts, along with a questionable sales figure of $6.39 billion, slightly below the $6.44 billion expected.
However, what has fueled the temporary bullish momentum is the board of directors’ decision to eliminate certain discounts that had been in place during previous quarters. These promotions are no longer considered essential for boosting sales growth, as they may have negatively impacted the company’s revenue figures. Now, the market sees this shift as a potential catalyst for sustained sales growth, which could in turn support long-term stock price appreciation.
Breaking the Sideways Trend
Until a few sessions ago, McDonald's stock had been trading within a tight range, fluctuating between $300 resistance and $286 support. However, the rising bullish momentum has pushed this sideways phase into the background. Now, analysts are evaluating whether this new upward gap could mark the beginning of a stronger trend movement. This scenario could materialize if the stock manages to reach its previous highs at $317.
Technical Indicators
RSI: The RSI line has spiked rapidly and is now reaching overbought levels, as indicated by the 70-mark threshold. If the stock remains above this level, it could signal a potential downward correction in the coming trading sessions.
MACD: The histogram has started to diverge from the neutral 0 level, indicating that the latest moving average trends continue to support the bullish movement. As long as this bias remains in the MACD, buying pressure could become even more significant.
Key Levels to Watch
By Julian Pineda, CFA – Market Analyst
However, what has fueled the temporary bullish momentum is the board of directors’ decision to eliminate certain discounts that had been in place during previous quarters. These promotions are no longer considered essential for boosting sales growth, as they may have negatively impacted the company’s revenue figures. Now, the market sees this shift as a potential catalyst for sustained sales growth, which could in turn support long-term stock price appreciation.
Breaking the Sideways Trend
Until a few sessions ago, McDonald's stock had been trading within a tight range, fluctuating between $300 resistance and $286 support. However, the rising bullish momentum has pushed this sideways phase into the background. Now, analysts are evaluating whether this new upward gap could mark the beginning of a stronger trend movement. This scenario could materialize if the stock manages to reach its previous highs at $317.
Technical Indicators
RSI: The RSI line has spiked rapidly and is now reaching overbought levels, as indicated by the 70-mark threshold. If the stock remains above this level, it could signal a potential downward correction in the coming trading sessions.
MACD: The histogram has started to diverge from the neutral 0 level, indicating that the latest moving average trends continue to support the bullish movement. As long as this bias remains in the MACD, buying pressure could become even more significant.
Key Levels to Watch
- $317 – Current key resistance, aligning with the October 2024 high. Consistent movements above this level could signal the beginning of a new and fresh uptrend in the stock.
- $300 – New support level, corresponding to the top of the previous lateral channel. If the price dips back below this level, it could increase neutral bias and lead to extended sideways movement. This also serves as a potential retracement area in the short term.
- $293 – Support zone, marked by the 50- and 100-period moving averages. If the price falls below this level, it would signal an end to the current bullish momentum, potentially confirming the start of a larger downtrend.
By Julian Pineda, CFA – Market Analyst
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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.
Disclaimer
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.