MCD pops to highest close ever
McDonald's Corporation (MCD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, MCD finished Wednesday at 224.81 gaining $2.44 (1.1%), outperforming the Dow Indu. (0.13%). Today's close at 224.81 marks the highest recorded closing price ever. Closing above Tuesday's high at 223.64, the stock confirmed its breakout through the prior session high after trading up to $3.07 above it intraday.
Daily Candlestick Chart (MCD as at Sep 16, 2020):
Wednesday's trading range has been $5.39 (2.43%), that's far above the last trading month's daily average range of $3.70. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for MCD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar.
After having been unable to move lower than 221.40 in the previous session, the share found buyers again around the same price level today at 221.32. The last time this happened on September 11th, MCD gained 1.17% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 214.87.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for McDonald's. Out of 103 times, MCD closed higher 54.37% 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 63.11% with an average market move of 0.58%.