McDonald’s closing in to 52 – Week High

Published on Tuesday, 19 January 2010 13:22 Written by Christian Paolinetti

New York, Jan 19^th (TradersHuddle.com) – Shares of McDonald’s Corporation (NYSE:MCD) were trading higher more than 2% in the first half of the trading session. With this move McDonald’s shares are approaching their 52-week high that was attained last November when the stock reached $64.75, falling short of breaking the $65.

Technically today’s price action move, breaks the wedging pattern in McDonald’s stock, which was booking lower highs and higher lows since booking its 52-week high.

Today’s move is being attributed to a Credit Suisse analyst upgrade that cited profit estimates and valuation that do not "fairly reflect" the company's "ability to build upon already substantial 2008/2009 share gains through a several-year recovery period."

 The analyst also sees the potential for raised estimates due to "more opaque international businesses, and [we] believe sentiment will improve with the corresponding upside in headline metrics."

The analyst also stated that McDonald’s will also benefit from both the ‘depressed’ and ‘recovering consumer, especially as high unemployment is expected to linger throughout 2010.