McDonald's stock has made a bullish reverse at the 50% Fibonacci retracement level. Does this indicate the end of the retracement and restart of the uptrend?
McDonalds (MCD) stocks has made a bullish reverse at the 50% Fibonacci retracement level. Does this indicate the end of the retracement and restart of the uptrend? The next earnings date is on 4 February 2021.
MCD seems to have completed a wave 4 (pink) pattern. This remains valid as long as price stays above the top of wave 1 (blue box). A break below it invalidates (red circle) our wave outlook.
A bullish breakout, on the other hand, confirms our bullish view. A wave 5 pattern could emerge above the resistance zone.
The main targets for upside are the -27.2% Fib at $246 and -61.8% Fib target at $264.
On the 1 hour chart, we see a first hint of a bullish reversal: the price action completed a 5 wave (orange) pattern. This seems to complete a wave 1 (grey).
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Good trading,
Chris Svorcik
The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter
Chris Svorcik is co-founder, trader, and analyst with Elite CurrenSea (www.EliteCurrenSea.com) since 2014.