MCD stock price showcased a V-shape recovery from its crucial support and the buyers tried to regain the confidence of the investors. It rose upward by forming higher high candles and displayed a bullish reversal pattern.
McDonald stock price defended the 200-day EMA support and the price bounced back with a strong momentum.
Recently, the stock witnessed a sharp rise in buying volume and prices also positively reacted to it. It denotes some big investors are injecting their money and expecting an outperformance in the coming months.
Previously, MCD stock price tried to break the $300.00 hurdle multiple times. Whenever the price entered the $295 zone, the sellers came forward and dragged the price downward.
In mid-August, the MCD share price broke down the $288.00 support which triggered the negative sentiment and caused a further decline.
It corrected approximately 8% from its 52-week high and retested the $275.00 breakout level. Luckily, the buyers were active near the support and came forward to push the price higher.
MCD stock price closed the previous session at $284.76 with an intraday rise of 1.06%. The market capitalization stands at $207.52 Billion.
Will MCD Stock Price Retest the Previous High Soon?
MCD stock price is turning bullish and buyers seem to be returning back on track. The financials of the company look good and sales growth is visible in the quarterly earnings.
In the long run, the business model of McDonald’s looks sustainable and profitable. The company is trying to innovate its product range to provide better services to its customers.
Due to this, the sales growth will substantially increase and may positively impact MCD stock price. If the buyers of MCD shares are able to break the $290 hurdle,
then the probability of retesting the previous high will increase.
McDonald Stock Price Formed a Bullish Engulfing Candle
McDonald stock price formed a bullish engulfing candle on a weekly time frame. If the buyers are able to give the follow-up momentum, then more upside will open. The next phase of the rally in MCD stock will be triggered when the price breaks the $290.00 hurdle.
On the other hand, if the price faces rejection from $290, then it might reverse down and spend time in consolidation. The MACD curve generated a positive crossover indicating bullishness. The RSI at 53 slopes upwards; denoting more room for the upside is open.
Conclusion
MCD stock price took support near $275.00 and showed a V-shape recovery. It shows that buyers are active near support and the downside risk is low.
The analysis suggests that McDonald stock price is in the recovery phase and will spend some time in a consolidation range between $275 to $290.
Technical Levels
- Resistance levels: $290.00 and $300.00
- Support levels: $275.00 and $270.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/15/mcd-stock-price-analysis-mcd-stock-defends-275-what-next/