Asset Watch
Thursday, July 28, 2022
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?