CHICAGO, IL – Shares of McDonald’s Corporation (NYSE: MCD) ended Thursday’s session lower, closing at
2.17 (0.75%). However, for savvy investors, the negative headline number conceals a bullish development that unfolded in the final hour of trading, offering a glimmer of hope for a positive start to the new week.
The fast-food giant was under significant selling pressure for most of the day. After hitting a session high of $290.61 shortly after the open, the stock began a steady decline, eventually bottoming out at a low of $285.57 in the afternoon.
Just when the outlook seemed bleak, a surge of buying activity entered the market. This late-day rally propelled the stock sharply off its lows, allowing it to recover nearly $2 before the closing bell. After-hours trading remained relatively flat, indicating that the selling pressure had subsided.
What This Means for Monday
The intraday price action, particularly the strong recovery from the lows, suggests the market is more likely to go UP on Monday. Here’s the analysis:
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Strong Rebound from Support: The most compelling bullish signal is the V-shaped bounce off the $285.57 low. This indicates that buyers saw value at that price level and stepped in with enough conviction to reverse the downward trend. This can often mark a short-term bottom for a stock.
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Seller Exhaustion: The inability of sellers to keep the stock pinned at its lows into the close is a sign of seller exhaustion. When the bears lose control at the end of the day, the bulls often take the initiative in the following session.
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End-of-Day Stabilization: After the sharp rebound, the stock traded sideways into the close. This period of stabilization suggests the stock has found a new, immediate support level and is building a base from which it could launch a recovery on Monday.
While the stock did finish the day in the red, the late-session buying spree is a powerful technical signal. Investors should watch to see if McDonald’s can hold above the $287 level on Monday, which would confirm that the bulls have successfully defended the lows and are looking to push the stock higher.
