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July 8 Chart of the Day - McDonald's

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

McDonald's (MCD) has recently been in the headlines for a variety of reasons ranging from price wars, continued expansion, falling stock price, etc

But one major think to keep in mind is that the global fast food giant is known as a "dividend stock".

McDonald's pays a quarterly dividend of $1.67 per share, which totals $6.68 over the course of a full year. And with the stock trading around $248.50 as of this writing, that means you're collecting an above-average yield of 2.68% (the S&P 500 average yield is 1.3%).

Additionally, McDonald's is considered a dividend growth stock because it has raised its payout for 47 consecutive years, including a 10% increase last October.

We have featured over 220 Charts of the Day during the past year and teach Price Action Trading for FREE  to traders who join our Highly Rated Trade Room.

Monthly Chart 

McDonald's monthly price action technical analysis review

On the monthly chart we can see that after setting its $302.39 all time high (ATH) earlier this year fell dramatically over the next several months melting through initial potential support levels.

The bulls have yet to step in with any conviction and the "line in the sand" level seemingly is around $222.

Weekly Chart

McDonald's weekly price action technical analysis review

 
On the weekly chart we can see with much more clarity the sudden fall from ATHs and where price briefly shot up over $300 then reversed starting a downward cycle.

Trading around $248 earlier today price has been making a series of lower highs and lower lows.

Price is approaching a previous consolidation zone with a potential decision to make.  Could this be level that price creates its next lower low or will price rise back to the upside again?

Only time will tell for sure what price will do next...

We've layered in traditional Fibonacci levels as well as support/resistance to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next? 

We don't make predictions...

Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.

  1. Support/Resistance
  2. Trend
  3. Fibonacci 
  4. Supply/Demand Zones,
  5. Change Control Zones

ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.

Take a look at the charts and let us know what you think.  

We'd like to hear from you in the comments sections.

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