McDonald's Close to Resistance

Published on Thursday, 11 March 2010 18:00 Written by TradersHuddle Staff

New York, March 11th (TradersHuddle.com) - Shares of McDonald's Corp. (NYSE:MCD) are trading very close to calculated resistance at $65.75 with the current price action closing at just $65.21 placing the stock near levels that make it difficult to buy.

McDonald's Corporation (NYSE:MCD) operates and franchises fast-food restaurants around the world. The Company's operates the largest restaurant chain in the world. McDonald's sells low price items primarily hamburgers and chicken items, along with breakfast biscuits and coffee. McDonald's, the seller of Big Mac's, was founded in 1948 and is based in Oak Brook, IL.

MCD's current stock range is defined by current calculated support defined at $60.04 and by the resistance level at $65.75, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for McDonald's, as the stock is well above support, however, as the stock pulls back towards $60.04 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $65.75 then traders will get an opportunity to enter McDonald's stock by establishing a position as the stock moves to a higher range.