Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News
Norwegian Cruise has a rocky journey in Q2
News
Could eBay bounce this week?
News
BioNTech’s shares shorted after disappointing Q2
News
Western Digital’s stock down despite upbeat print
News
Alibaba delivers upbeat print, shares rise
News
Is gold in trouble?
Trends & Analysis
News
Norwegian Cruise has a rocky journey in Q2
News
Could eBay bounce this week?
News
BioNTech’s shares shorted after disappointing Q2
News
Western Digital’s stock down despite upbeat print
News
Alibaba delivers upbeat print, shares rise
News
Is gold in trouble?

CFDs & spread bets are complex instruments & come with a high risk of losing money rapidly due to leverage. 73% of Retail investor accounts lose money when trading CFDs & spread bets with this provider. You should consider whether you understand how CFDs work & whether you can afford to take the high risk of losing your money.


Account
New to ADSS? Open an
account now to get started.
Open an account Login

Asset Watch

Is McDonald’s a breakout candidate?

 

Thursday, July 28, 2022, 08:25am GMT

While a sea of red flooded the financial markets on Jul. 26, McDonald’s was a noticeable bright spot. Moreover, with the company reporting resilient Q2 earnings, CFO Kevin Ozan said, “our menu prices were up high single digits, relatively consistent with what I talked about in the first quarter, [or] a little bit higher than that.” He added, “we’re taking smaller, more frequent price increases because it gives us the flexibility to be able to see how consumers are reacting and then adjust if or when necessary.”

 

As a result, while abnormally high inflation is the primary problem confronting U.S. corporations, McDonald’s pricing plans continue to bear fruit. With the largest restaurant chain in the world near a technical inflexion point, will the bulls emerge victorious?

 

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.


Site by Pink Green
© ADSS 2022


CFDs and Spreadbets are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of Retail investor accounts lose money when trading CFDs and Spread Bets with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

ADSS is a trading name of ADS Securities London Limited, a company registered in England and Wales with company number 07785265 (VAT Registration Number: 212722447). Registered address 9th Floor, 125 Old Broad Street, London, EC2N 1AR. ADS Securities London Limited is authorised and regulated in the UK by the Financial Conduct Authority (FRN 577453).

The information on this site is not directed at residents of the United States, Canada, EU or any particular country outside the UK, and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law.

All opinions, news, analysis, prices or other information contained on this website are provided as general market commentary and does not constitute investment advice, nor a solicitation or recommendation for you to buy or sell any over-the-counter product or other financial instrument. Please ensure you understand all risks and seek independent advice if necessary.