When you think of exciting stocks to trade, you probably don’t think about McDonald’s (NYSE:MCD).
While not exciting for a day trader, sometimes you need stable uptrending stocks like this in your portfolio.
Here’s the big reversal on positive divergences that sent shares soaring all the way back to a new high today:
McDonald’s (MCD) entered a Daily Downtrend about this time last year in 2016.
Shares tumbled from $131 toward $112 (a 15% decline) and then reversed higher even faster into November.
Note the positive divergences, break above the trendline and moving averages, and the cross of the EMAs.
Shares “crept” higher, only giving two valid pullback (retracement) opportunities along the way.
Shares “rode” the rising 20 day EMA all throughout 2017 so far.
What will happen next?
Will this blue chip stock break out and continue the uptrend?
Or will sellers strike once again, armed again with negative divergences into a key resistance target?
Frame your trading strategy in terms of trading the departure “away from” $131.00.