Current trend

Shares of McDonald’s Corp., the largest fast-food chain, are correcting at 293.00.

The second-quarter financial report is due on October 23, and leading analysts are adjusting their estimates for the future dynamics of the stock. Thus, experts at Loop Capital, LLC, raised the target price from 320.00 dollars to 342.00 dollars and reaffirmed the rating as Buy, based on the company’s decision to extend the “5 dollars meal deal” promotion until the end of the year. It became an alternative to the expected launch of the online shopping platform, postponed to 2025. Economists at Citigroup Inc. maintained their rating at neutral with a new target price of 301.0 dollars, up from 275.0 dollars previously, amid positive forecasts for the corporation’s financial statistics.

In the third quarter, revenue may amount to 6.76B dollars compared to 6.49B dollars in the previous quarter and 6.69B dollars in the same period a year earlier, and earnings per share (EPS) — 3.18 dollars against 2.97 dollars and 3.17 dollars, respectively.

Support and resistance

On the daily chart, the trading instrument is moving within the ascending channel 300.00–285.00, reversing toward the resistance line.

Technical indicators are holding a long-term buy signal, practically not reacting to the trend slowdown: the AO histogram is forming correction bars, and the fast EMAs of the Alligator indicator are above the signal line and are held at a stable distance from it.

Resistance levels: 298.00, 310.00.

Support levels: 290.00, 277.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 298.00, with the target at 310.00 and stop loss 292.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 290.00, with the target at 277.00. Stop loss — 300.00.