Shares of McDonald’s Corp., the largest fast food chain, are correcting in the local trend at 292.00.

On the daily chart, the price is moving within the global Diamond pattern with boundaries of 298.00–286.00, preparing for implementation and exit.

On the four-hour chart, the quotes are at an equal distance from both boundaries. As it is at the top of the previous uptrend, the price may break the support level of 288.00 and decline. However, in case of growth and breakout of 295.00, the asset may reach a year’s high of 302.00.

Technical indicators maintain a sell signal, expanding the range of fluctuations: fast EMA on the Alligator indicator move away from the signal line, and the AO histogram forms corrective bars below the transition level.

Trading tips

Short positions may be opened after the price declines and consolidates below 289.00, with the target at 281.60. Stop loss – 293.00. Implementation period: 7 days or more.

Long positions may be opened after the price rises and consolidates above 295.00, with the target at 302.00. Stop loss – 292.00.