After hitting an all-time high, at 190.76, on the 29th of November 2018, McDonalds stock (NYSE: MCD) retraced back down heavily and closed the year in the negative territory, below 2018’s opening price at 173.63. But from the start of this year, the share price has accelerated rapidly in the upwards direction, where it is now targeting again the highest point ever, at the above-mentioned 190.76-dollar price tag. The recovery is marked by the short-term upside support line taken from the lowest point of December 2018, and thus, we would consider the short-term outlook to be positive for now.
In addition to the above positive aspects of the short-term outlook, the McDonalds stock has also broken the key resistance area at 186.73, marked by the high of the 13th of December 2018. MCD is now showing a firm direction higher and could easily travel towards the 188.85 obstacle, which might provide some initial resistance. If the bulls struggle to get past it, we may see the share price correcting slightly back down. However, as long as the price remains above the aforementioned short-term upside support line, we will continue aiming higher. If the stock pushes up again and breaks above the 188.85 barrier, this might clear the path towards a re-test of the all-time high level at 190.76.
Our oscillators also support the above-discussed scenario, as the RSI and the MACD are still pointing to the upside. Additionally, the RSI is well above 50 and keeps targeting the to 80 territory, while the MACD is in the positive territory and above its trigger line.
In case MCD falls sharply, breaks the short-term steep upside support line and gets below the 183.16 support zone, this is when investors may start worrying about the stock’s short-term upside potential. The share price may continue with its decline and reach the next possible area of support at 179.10, marked by the lows of the 9th and the 16th of January. If that area is too weak to break the fall, MCD could drop to its next potential support at 177.80, marked by the high of the 31st of December 2018.
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