McDonalds bullish reversal at 50% fib of wave four
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McDonalds (MCD) stocks has made a bullish reverse at the 50% Fibonacci retracement level. Does this indicate the end of the retracement and restart of the uptrend?
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MCD seems to have completed a wave 4 (pink) pattern. This remains valid as long as price stays above the top of wave 1 (blue box).
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A wave 5 pattern could emerge above the resistance zone. The main targets for upside are the -27.2% Fib at $246 and -61.8% Fib target at $264.
Price Charts and Technical Analysis
MCD seems to have completed a wave 4 (pink) pattern. This remains valid as long as price stays above the top of wave 1 (blue box). A break below it invalidates (red circle) our wave outlook.
A bullish breakout, on the other hand, confirms our bullish view. A wave 5 pattern could emerge above the resistance zone.
The main targets for upside are the -27.2% Fib at $246 and -61.8% Fib target at $264.
On the 1 hour chart, we see a first hint of a bullish reversal: the price action completed a 5 wave (orange) pattern. This seems to complete a wave 1 (grey).
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A bearish breakout could indicate a deeper retracement towards the Fibonacci retracement levels. They are expected to create a bounce or reversal.
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Only a break below the bottom and 100% Fibonacci level indicates an invalidation (red circle).
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A bullish breakout could indicate a new uptrend again.
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After the break, price action should make a bull flag to avoid any false breakouts
The analysis has been done with the ecs.SWAT method and ebook.
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