McDonald's Corp. (MCD) has been trading sideways in recent weeks but now we could see the start of another leg higher. Let's check out the latest charts and indicators to see where to go long, what to risk and what could be the upside.
In this daily bar chart of MCD, below, we can see that prices started to trend higher in September after months of sideways price action. Today MCD is trading above the rising 50-day moving average line and the bullish 200-day line.
The daily On-Balance-Volume (OBV) line started to improve in September and has chopped sideways in November.
The trend-following Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in early November signaling a take profits mode.
In this weekly bar chart of MCD, below, we can see an impressive rise from late 2016. Prices are in an uptrend above the rising 40-week moving average line.
The weekly OBV line shows a much smoother pattern and its rise over the past two years supports the bullish case.
The weekly MACD oscillator is pointed up in a bullish mode but the two moving averages of the indicator have begun to narrow. A take profits signal could happen in the weeks ahead.
In this Point and Figure chart of MCD, below, we can see the long uptrend going back to 2015. An upside price target of $199 is indicated. A trade at $190 will refresh the uptrend and a decline to $178 will be a minor warning signal.
Bottom line strategy: MCD could start a rally to the $200 area soon - the next big figure. Traders could buy strength above $190 if they can afford to risk to $177.