Stock of the day: McDonald's
23 May 2023
On Tuesday, we received an update on the current situation regarding McDonald's. In our previous analysis conducted at the end of March, we held a bullish stance. This is how we concluded our previous assessment:
"The price rebounded and, three days ago, broke through the mid-term downtrend line, which connected the lower highs since November (marked in red). This breakthrough indicated the end of the correction and the initiation of a new bullish trend. The sentiment surrounding MCD is now positive."
Our previous analysis proved to be accurate as the price of McDonald's shares climbed steadily throughout April, with gains seen almost every trading day. However, we are revisiting McDonald's at this moment because it appears that the ongoing uptrend is likely coming to an end or, at the very least, pausing. May has been characterized by a correction, which has accelerated particularly in recent days. As of now, McDonald's is trading near its monthly lows.
Considering potential targets, it seems reasonable to anticipate that the long-term upward trendline (depicted in blue) could serve as a target. The likelihood of reaching this level is quite high.