MCD climbs to highest close since March 4th
McDonald's Corporation (MCD) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, MCD ended the week 5.31% higher at 204.60 after gaining $1.42 (0.7%) today, outperforming the Dow Indu. (0.17%). Today's close at 204.60 marks the highest recorded closing price since March 4th. Closing above Thursday's high at 203.60, McDonald's confirmed its breakout through the prior session high after trading up to $1.56 above it intraday.
Daily Candlestick Chart (MCD as at Aug 07, 2020):
Friday's trading range has been $1.87 (0.92%), that's far below the last trading month's daily average range of $3.59. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MCD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on June 22nd, MCD actually lost -0.45% on the following trading day.
Prices are trading close to the key technical support level at 202.73 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for McDonald's. Out of 85 times, MCD closed higher 54.12% 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 56.47% with an average market move of 0.47%.