Last week was a stellar one for McDonald’s (NYSE:MCD) which saw the stock close with a wide spread up candle on solid volume, and once again reinforcing the bullish sentiment we highlighted back in May when it was trading at $197 and wrote at the time there was plenty more to come.
Friday’s price action was key as it broke through the minor resistance at $218 per share which now provides an excellent platform of support following the congestion phase of July. More significantly ahead is a low volume node on the volume point of control histogram to the right of the chart, and this in itself should help the stock continue higher, through $222 in the near future.
For a longer-term perspective, we now move to the weekly chart, and here too, we have a positive picture for the stock, with volume falling away dramatically through to $225. Note the trend monitor indicator which has remained firmly blue throughout this extended bullish trend, and what is significant for McDonald’s (NYSE:MCD), and reinforces the bullish sentiment, is the lack of reversals when the major indices are selling off sharply.