Following our previous report on Dec. 27, 2008 ($61.06 U.S.), McDonald’s Corp. completed a large trading range (dashed lines) and then resumed the long-term up-trend above its 40-week moving average. It reached a high of $94.28 recently (A) for a 54-per-cent appreciation from our previous report. McDonald’s continues to have higher targets. Technical indicators including the rising 40-week moving average and the MACD (moving average convergence divergence – see lower panel) confirm the bullish status. Only a decline below about $83-$84 would be negative.
Point & Figure measurements provide targets of $99 and $109. Higher targets are visible.
Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. ( www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com Web site. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.comReport Typo/Error