After reporting earnings last week, McDonald’s has been ticking higher and is now approaching its all-time highs near $325, which it hit mid-March. Since then, MCD has formed a potential bullish cup-and-handle. This is important since the stocks has shown the ability to capitalize on similar chart formations over the past nine months, as the chart shows. It broke out from a similar setup last July, which led to a substantial upward swing through early October. After a period of consolidation, it broke out of two other bullish patterns in February, bringing us to now — where MCD is again trying to take advantage of another constructive bullish setup. Needless to say, a breakout would target much higher prices to around $350 a share. With the stock now near its highs once more, it’s not surprising that it’s also trading above all of its key moving averages — including the 50-day moving average, shown in green on this second chart. MCD has shown in the past that breaking above the 50-day average has led to strong moves higher in the months that followed. This was most evident in 2020, 2021and in 2024, where the rallies after clearing the 50-day line all totaled more than 20%. The stock is up about 9% from the point where it first broke back above the 50-day in early 2025. From this angle, it could still have further to go — especially if it mimics some of the biggest moves we’ve seen over the last few years. Zooming out shows that MCD’s recent strength is nothing new. The stock has been oscillating within a pretty clear and consistent upward-sloping trading channel ever since rebounding from the Covid lows in 2020. It has ebbed and flowed between extremes within the channel over the last few years. Currently, the stock sits near the middle of the channel, which suggests there’s additional upside potential if it can rally back to the upper edge of the pattern once more. Putting it all together — with MCD now close to breaking out from its most recent bullish pattern, having recently reclaimed its 50-day moving average, and still trading within the confines of a long upward-sloping channel — it’s clear the technicals remain constructive. The risk would be if the potential breakout never materializes or if a push to new highs gets aggressively faded. For now, though, the charts are supportive. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
