Don't Ignore This Chart!

McDonalds Breaks Triangle Trend Line to Signal Trend Continuation


McDonalds shareholders are certainly not "lovin it" right now because the stock is in a long-term downtrend and it is one of the worst performing stocks in the Dow Industrials. The chart below shows the 50-day SMA below the 200-day SMA and the stock below the 200-day SMA. The breakdown started with a lower high in mid June and a big gap down. The stock then consolidated with a triangle and is breaking the triangle trend line today. More after the jump. 

A small triangle is considered a continuation pattern and the prior move was clearly down. This makes the triangle a bearish continuation pattern. Today's break looks like confirmation and chartists can set key resistance in the 119-120 area. The indicator window shows MACD edging into positive territory on Monday-Tuesday and moving back into negative territory today. It also looks like momentum is turning down. 

Thanks for tuning in and have a great day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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