McDonald's resuming the negative trades and increases its sharpness – analysis 21-10-2016

McDonald's shares ended Thursday’s trading lower by (-0.69 point) or (-0.62%) of the previous closure around the 112.90 level as the lowest recorded level last week, comes after falling below 120.35 level ahead the next support 116.00, and after trading above 120.35 resistance reaching below 124.80 level, coinciding with engaging the SMAs 50 and 100, where this rebound came after reaching the support zone between 116.00 and 112.90, after its sideway trades below 124.80 resistance level, after passing the level 124.80, as this level contributed the bullish direction for the previous medium and long trades, also coincides with breaching the channel’s support shown above during the current trades, comes after the price formed a support at 116.00 level, with the continuous support from the SMA 50 and 100.

Holding below 124.80 level pushed the price to decline to retest the support level of 112.90 as the channel’s final target.

Generally; the price was able to pass 116.00 support to 112.90 level, as trading above this level may push the price to retest again 116.00 level, but trading below 112.90 support will lead the price to target the next support at 105.00.