Stock of the day: McDonald’s
30 September 2024
In today's stock of the day, let's kick off the week by discussing McDonald's, which had an impressive performance last week. Looking at the weekly chart, we can see a large rectangle pattern marked by orange lines, indicating a horizontal resistance and support level. Last week's candle successfully broke above the rectangle's upper resistance, and the price closed the week above this critical level, giving a strong long-term signal to buy.
Despite McDonald's already rising significantly over the past few months, this breakout confirms continued bullish momentum. However, if the price were to drop back inside the rectangle, this would indicate a false breakout, triggering a signal to sell.