Technical analyst Jay Woods, CMT, identifies a potential buy signal on McDonald’s (MCD) ahead of quarterly earnings. The stock has declined 11% year-to-date and 21% from its March peak, trading around $260-261. Technically, the RSI shows a bullish divergence on both daily and weekly charts, while the $260 support level aligns with the volume-weighted average price anchored to the Covid lows. The upside target is between $288, the 200-week moving average, and $300, the 50-week moving average. The analyst recommends exiting the trade if the price breaks below $260, noting that the average earnings move has historically been around +/- 2.3%.
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