McDonald’s Corporation (NYSE:MCD) Long Term Technical Analysis February 2017

MCD Long-term outlook

Strong outlook in Mcdonald after it announce reorganization plan to focus on 95% franchised strategies. This plan might hit a roadblock as the company’s China plan under challenge by Hejun Vanguard Group. This challenge will hinder the sales of 80% McDonald’s China to CITIC and Carlyle Group.

If the deal blocked by the regulator, MCD will face a heavy pressure on its plan and also the company profitability. Meanwhile, the tax policies announced by President Trump in U.S market will benefit the company. Major problem stays the same; less customer enters the restaurant even though the company tried all its best with a new menu, campaign and other efforts.

New Month

Monthly chart

The monthly chart of MCD moderately bullish with the price gaining for three straight months and February looks to close as another bullish candle. The price movement hinted for a challenge toward record high $131.96 if no major shift in the fundamental environment.

Weekly chart

 

MCD survive the trendline test in the weekly chart. The upward price movement continues after it closed above the trendline. Traders might need to wait until the price corrected before placing any long position. A short position is not favorable as the price has a strong bullish trend.

Daily chart

Obvious upward movement in MCD faces resistance near the extreme high $128 – $128.60. Bearish pin bar formed and might temporarily reverse the bullish price course. If the price falls from the resistance, it will find support at $124 – $125. Traders could use the chance to place long position with low risk if price manages to move near the support level.

Trade plan

The long position is best taken when the price reach $124 – $125

The short position signaled in the daily chart by pin bar might be taken but with a minimum position as the trend is bullish. The target of bearish movement is $124 – $125 support level.

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