Source: TradingView

Prior to the Jul. 21 close, McDonald’s spent nearly a month closing above its 10-day moving average, and the level is considered a solid gauge of short-term momentum. After closing sharply below the 10-day MA on Jul. 25, McDonald’s recouped the key level on Jul. 26, meaning the uptrend may have more room to run.

However, McDonald’s ended the Jul. 26 session below its intraday highs, as resistance is present near $258. This level is close to the November 2021, April 2022, and July 2022 highs, so the battle lines are drawn between $250 and $258.

But if the 10-day MA ($254) holds, is a breakout above $258 inevitable?

Sources:

McDonald’s earnings call transcript:

https://seekingalpha.com/article/4525838-mcdonalds-corporation-mcd-ceo-chris-kempczinski-on-q2-2022-results-earnings-call-transcript

ADS Securities London Limited “ADSS” is an execution-only service provider. This material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or investment objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by ADSS that any particular investment, security, transaction or investment strategy is suitable for any specific person. To the extent that any content in this material is construed as investment research, you must note and accept that the content was not prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.  This material may contain links to third party websites, and any content, or use of your personal data by any third party websites is not the responsibility of ADSS or any member of the ADSS Group.