Mcdonald’s Corporation (MCD) shares rose about 2% during pre-market trading on Tuesday after the company reported an improvement of the decrease in comparable sales between late March and May. The iconic restaurant chain reported a 29.8% decline in comparable sales during the COVID-19-impact period, consisting of a decrease of 12% in the united States, a 53.4% decrease in operated in international markets, and 26.1% of the drop in the international markets.
The company expects to invest approximately $ 200 million through an incremental marketing contribution through the united States and international operated markets to accelerate the recovery and to stimulate growth. In addition, Mcdonald’s is to provide additional targeted financial support to some of the franchisee organizations that have been negatively affected the whole of his system.
Last week, Barron’s listed McDonald from among its eight dividend stocks that will make it through the pandemic in good shape. According to the publication, Mcdonald’s could take advantage of the rising demand given the prospects for ongoing low interest rates and political pressure on redemptions.
From a technical point of view, Mcdonald’s stock has rebounded from trendline support and the 50-day moving average at around $182.82 this week. The relative strength index (RSI) remains at a moderate level with a reading of 52.61, but the moving average convergence divergence (MACD) is still at risk of a bearish cross. These indicators suggest that much of the uncertainty surrounding the future price direction.
Traders should watch for a high volume bounce from trendline support and the 50-day moving average at $182.82. If the stock breaks out, traders could see a move towards the upper trendline resistance at around $206.00. If the stock breaks down, traders could see a move to test the reaction lows of close to $168.00 in the coming sessions, even if in the medium term, the trend remains bullish for the time being.
The author holds no position in the stock(s) mentioned except through the passive management of index funds.