McDonald's Corp. (MCD) did not look appealing on September 27 when we wrote that "The downside price targets currently for MCD on the two Point and Figure charts are not terrible but they mean that the stock could retest its June low and one never knows whether the prior low will hold or break. I would remain defensive on MCD shares."
Let's order up some new charts ahead of the company's earnings on Thursday morning.
In the daily bar chart of MCD, below, we can see that the "big picture" for shares of MCD is a large sideways trading pattern. MCD stayed weak into early October but then prices staged a brisk rally. MCD has closed above the 50-day and the 200-day moving average lines. The slopes of both lines are negative so it will take a longer rally to turn the slopes positive.
The On-Balance-Volume (OBV) has been moving sideways since March but now shows some improvement. The Moving Average Convergence Divergence (MACD) oscillator is now bullish.