Beaten-down McDonald's stock may be ripe for a rally
MCD•McDonald's shares are down 18% this year but rebounded from support near $233. A move above $253 could open the way to $258 and $283, while a renewed slide could test support near $246 and lower levels.
1. Support and momentum
McDonald's shares fell to $229.20 by early October, near the $232.99 50% retracement level of the stock's advance from March 2020 to March 2026. The decline stalled there, and the monthly Relative Strength Index fell to 25.49 in September, its lowest reading since March 2003.
2. Potential price levels
The shares closed Wednesday at $250.50 and were on pace for a fourth straight weekly gain. A move above a downward-sloping trendline near $253 could open the way to $258, near the 89-month moving average, and then $283, near the 55-month moving average. A monthly close above $283 would strengthen the case for a return toward record highs.
3. Downside levels
If the decline resumes, the article identifies support near $246, followed by a price gap near $238 and the October low of $229.20. Lower support levels are $218 to $222, then $212, with major long-term support just above $160.
