McDonald's Corp. had a sharp rise in 2011 (A-B) and then settled in a wide horizontal trading range mostly between $87 (U.S.) and $103 (dashed lines). Recent price action above this range (C) signalled the start of a new major up-leg.
McDonald's has higher targets, but a rest in the form of a minor correction toward $107-$108 would provide a better price entry. Behaviour indicators including the rising 40-week moving average (40wMA) and the rising trend-line (solid line) confirm the positive status. Only a decline below $103-$104 would be negative.
After a correction, Point & Figure measurements provide a target $129. The large trading range (dashed lines) supports significantly higher targets.
Monica Rizk is the senior technical analyst and Ron Meisels is the president of Phases & Cycles Inc. and he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com.