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GBP/USD may correct lower

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Week Ahead Preview: 24th of March

Trends & Analysis
News

GBP/USD may correct lower

News

Japan stocks rise, ending 3-day losing streak

News

USD/JPY recoups some losses – what’s next?

News

Crude oil surges after Trump’s tariff announcement

News

USD records weekly gain versus EUR

News

Week Ahead Preview: 24th of March

Asset Watch

Is McDonald’s a breakout candidate?

Thursday, July 28, 2022

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?
McDonalds Stock Chart Trading View

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?


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