MCD unable to break through key resistance level
McDonald's Corporation (MCD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MCD finished the month -0.99% lower at 184.47 after gaining $1.67 (0.91%) today, slightly outperforming the Dow Indu. (0.85%).
Daily Candlestick Chart (MCD as at Jun 30, 2020):
Tuesday's trading range has been $3.31 (1.81%), that's below the last trading month's daily average range of $4.35. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MCD.
Unable to break through the key technical resistance level at 184.49 (R1), the share closed below it after spiking up to 185.20 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on June 5th, MCD actually gained 2.78% on the following trading day.
McDonald's shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for McDonald's. Out of 343 times, MCD closed higher 53.35% 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 57.43% with an average market move of 0.36%.