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.

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.