Yesterday, Tuesday 30 April, McDonald’s released Q1/2019 quarterly figures. Investors liked what they saw, and the stock reached a new all-time high of just under US$200 yesterday. The share price of the fast-food chain has thus almost doubled in the last five years.
At the opening of trading yesterday the share fell slightly. This may have been due to initial profit-taking by investors. This would not be unexpected. A stock with an all-time high would generally tend to profit-taking in the short term.
In the past, the price rises were accompanied, on several occasions, by setbacks, and these were then followed by sharp price rises. This pattern of more-or-less continuous surging has made the share attractive to longer-term investors.
The range around US$198.65 should bring a decision in the short term. If the bulls can push through this area, then the market will enter so-called ‘uncharted territory’. If the bulls then continue to hold out, a resistance zone in the US$205.50 range could result.
However, if the bulls run out of steam, first support could be in the US$193.25 area. Further support could come in the US$188.75 and US$185.75 regions.
The MACD is in positive territory. The MACD line is above its trigger line, but the momentum could flatten out. This is reflected in the histogram, which could form flatter trends.