MCD closes above its opening price after recovering from early selling pressure
McDonald's Corporation (MCD) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, MCD finished the week 3.25% higher at 185.33 after surging $2.59 (1.42%) today on high volume, outperforming the Dow Indu. (0.54%). This is the biggest single-day gain in over four weeks. Today's close at 185.33 marks the highest recorded closing price since January 24th. Trading up to $1.16 lower after the open, McDonald's managed to reverse during the session as bulls took control ending the day above its opening price. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (MCD as at Mar 15, 2019):
Friday's trading range has been $3.35 (1.83%), that's far above the last trading month's daily average range of $2.10. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for MCD.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 182.11 earlier during the day, the share bounced off the key technical support level at 182.40 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on March 4th, MCD gained 0.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 189.42, upside momentum could speed up should the stock be able to break out to new highs for the year. As prices are trading close to March's high at 185.65, upside momentum might accelerate should the market mark new highs for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for McDonald's. Out of 448 times, MCD closed higher 59.82% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 63.84% with an average market move of 0.73%.