MCD'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.
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.
Trade active
Entered here on strong 30min and 1hr MACDTrade closed: stop reached
Was stopped out with a 0.5% gain. looking at the hourly chart, I feel like the MACH is about to head through the zero line. if this can then turn and finish strongly, I might re-enter for another go towards the end of the session or tomorrow am.Note
Second chance at MCD upside this morning perhaps. MACD histogram is now marking a strong divergence with the rest of the market as positive tailwinds.
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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.