McDonald’s

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McDonald’s was one of the first stocks that entered a major uptrend after breaking out of a massive symmetrical triangle. Breakout from a widely recognized chart pattern (symmetrical triangle) resulted in a 3 year-long uptrend. McDonald’s is now forming another popular technical chart formation; head and shoulder top. Head and shoulder patterns are not confirmed until price breaks down the neckline. Both shoulders are symmetrical and the right shoulder formed below the 200 day moving average. Technical outlook suggests lower prices in the coming months. Breakdown below 85 levels will confirm the H&S top formation and price will target 70 levels. H&S top will fail only if the price breaches above 94 levels.

MCDONALD’S (PDF document)