In today's stock of the day, we're analyzing McDonald's, which has been in a consistent decline since mid-October. The outlook for buyers has been challenging, but a glimmer of hope may lie ahead as the stock has approached a critical horizontal support level.
The green horizontal support around $278 appears to be holding the line for now, with a hammer candlestick formed—a potentially optimistic sign for buyers. However, challenges remain, as the price is just below a significant resistance level marked in yellow at $284.
For sentiment to truly shift towards the bullish side, the price needs to close above this yellow resistance level. Until that happens, the overall sentiment remains bearish, and the probability of a breakout below the green support is higher.
If the green support is breached, sellers may see a continuation of the downtrend. On the other hand, a close above the $284 resistance would mark a proper buy signal, potentially reversing the negative trend seen over recent months.