McDonalds bullish reversal at 50% fib of wave four

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?
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 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.

Chris Svorcik Elite CurrenSea

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).

A bearish breakout could indicate a deeper retracement towards the Fibonacci retracement levels. They are expected to create a bounce or reversal.
Only a break below the bottom and 100% Fibonacci level indicates an invalidation (red circle).
A bullish breakout could indicate a new uptrend again.
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.

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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