MCD stuck within tight trading range
McDonald's Corporation (MCD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
MCD ended the week -0.29% lower at 228.71 after edging lower $0.44 (-0.19%) today, slightly underperforming the Dow Indu. (-0.1%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (MCD as at Oct 23, 2020):
Friday's trading range has been $2.61 (1.13%), that's below the last trading month's daily average range of $3.58. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for MCD. Prices continued to consolidate within a tight trading range between 226.88 and 230.41 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on Monday, MCD actually gained 0.64% on the following trading day.
Prices are trading close to the key technical support level at 227.22 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 231.91 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 226.88 where further sell stops might get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for McDonald's. Out of 709 times, MCD closed higher 56.14% 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 61.64% with an average market move of 0.54%.