The daily chart for Mc
Donald’s (NYSE:MCD) makes interesting reading. The stock continues to remain bullish as I mentioned in a previous post on this stock and as confirmed with the volume on both Thursday and Friday last week. Thursday’s price action saw the stock move lower, only for it to recover during the session and close higher on the day on excellent buying and a strong signal of intent to move higher on this buying. Friday opened gapped up on good volume with the stock closing the week $186.10.
However, further advancement for this stock is likely to be harder, given the two strong areas of resistance now immediately ahead at $193 and $197, respectively. Each is strong in its own right, but together they constitute a serious area of resistance and denoted with the red and blue dashed lines of the accumulation and distribution indicator. The thickness of the line describes the strength of each area and is calculated automatically by the indicator and is likely to present a solid barrier and defence of the $200 per share price. Given the strength of this resistance, it will take excellent volume to drive through this region. Meantime, the trend monitor continues to confirm the bullish picture and should the $200 be attained the stock will have a solid support platform for the next move leg higher.
