October 28 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 has been in the headlines recently due to President Trump working one of it's drive thrus as well as a dangerous E. coli outbreak.
The company reports earnings before market open on Tuesday so we wanted to review their chart from a price action technical analysis perspective.
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that price recently reached un-chartered territory after setting fresh $317.90 all time highs (ATHs) earlier this month before fading back to the downside.
With no previous price history above $300 price is going through what we like to call a "discovery phase" to create new structure. As traders we're limited to estimating potential upside targets using only price action tools Trend and Fibonacci as shared for free in our Trading All Time Highs webinar replay.
Weekly Chart
On the weekly chart we can see where price broke above it's previous ATH before dropping back below it.
The market is implying about a $10.55 move in either direction as marked on the weekly chart by this Friday November 1st. Share price has risen during the week of earnings 6 of the last 8 quarters.
Could earnings be the catalyst that pushes price to its next higher high or will price continue fading?
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend 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.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- 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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