Papers of the US fast food chain MC Donalds have reached another important milestone this week. With the help of the very strong performance on the stock exchanges, they were able to overcome a major hurdle on a larger scale and thus activate a follow-up purchase signal.
The security of MC Donalds in August 2019 at $ 221.93. A somewhat weaker trend phase then began, which culminated in the well-known Corona crash in March. However, the share recently recovered significantly from the lows of $ 124.23 and initially rose into the resistance area by $ 190.00. After a brief reset to $ 167.85 in May, bulls took the security away MC Donalds again, pushing it past the $ 190.00 mid-week hurdle. This means that there is now a classic follow-up purchase signal and can be followed up using appropriate instruments.
Weekly closing rate crucial
Despite all the euphoria, investors should still wait for solid weekly closing prices. This is the only way to increase the likelihood of moving above the $ 190.00 level to the next $ 200.00 target range, which could push the March highs of $ 207.16 higher. However, the upward movement is not expected to end until the overarching downward trend of $ 213.00. If the bullish market move this week turns out to be a false signal and the stock returns below the $ 186.10 level, investors should test the 50-day average (blue line) at currently 183.36 $ And possibly stop support at $ 178.70. Below that, a return to the May lows at $ 167.85 is very likely.
- Resistances: 194.26; 195.74; 200.00; 202.64; 205.67; $ 207.16
- Supports: 190.41; 188.09; 183.36; 180.00; 178.70; $ 174.71
MC Donalds in US dollars daily chart; 1 candle = 1 day (log. Candle chart)
Viewing period: 05.06.2019 – 04.06.2020. Historical considerations are not reliable indicators of future developments. Source: tradingdesk.onemarkets.de/underlying/US5801351017
MC Donalds in U.S. dollar in weekly chart; 1 candle = 1 week (log. Candle chart)
Viewing period: 01.06.2015 – 04.06.2020. Historical considerations are not reliable indicators of future developments. Source: tradingdesk.onemarkets.de/underlying/US5801351017
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The contribution McDonald´s – fresh potential released first appeared on onemarket’s blog (HypoVereinsbank – UniCredit Bank AG).