McDonald’s Corporation (NYSE:MCD) Long Term Technical Analysis February 2019

MCD Long-term outlook

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Improvement, remodeling, recapture the foot-traffic has been the task McDonald’s chain trying to achieve. Impressively the restaurant chain manage to grow in the recent fiscal year report. MCD posted EPS of $1.97 vs. $1.90 and revenue of $5.163 billion vs. $5.162 for Q4.

Most of the success attributed to worldwide modernization of the restaurant chain which invites more foot-traffic to the store. The modernization still in process and have 2020 to complete all of the processes. Growth expected to continue to accelerate in 2019 and it should support MCD share prices to continue moving upward.

Read McDonald October 2018 analysis

New Month

Monthly chart

A bounce in September last year brought MCD share prices to a bullish streak and print fresh all-time high. The direction then drastically reversed in December. We could regard the selling reaction as profit-taking event as the close still inside November candlestick range.

In January, the bull attempted to bring the price higher but failed to print significant movement. This month, the share prices moved down to test the orange channel before bounce upward. Under the current situation, it looks like MCD still has fuel to continue upside.

Weekly chart

The outlook on the weekly chart confirms the bounce from the bottom of the orange channel. On the upside, there is an all-time high resistance. Traders will continue to watch the share prices movement between the bottom of the channel and the all-time high. No reason to take a short position, on the other hand, a long position near 23.6% Fibonacci retracement might be the best scenario to take.

Daily chart

Another triangle formed on MCD daily chart. It means we are in a consolidation period and MCD share prices could bounce up and down inside the triangle range. Short near the top of the triangle and long at the bottom of the triangle are strategies traders could take.

Trade plan

The long position could be taken near the bottom of the triangle shown on the daily chart. On the longer-term, the bottom of the white channel also options to watch.

Short position near the top of the channel or all-time high are options traders could take.

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