McDonald’s Corporation (NYSE: MCD)

McDonald’s Corporation operates and franchises McDonald’s restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company’s restaurants offer various food products, soft drinks, coffee, and other beverages. As of December 31, 2014, it operated 36,258 restaurants, including 29,544 franchised restaurants comprising 20,774 franchised to conventional franchisees, 5,228 licensed to developmental licensees, and 3,542 licensed to foreign affiliates; and 6,714 company-operated restaurants.
Take a look at the 1-year chart of McDonald’s (NYSE: MCD) below with added notations:

After rallying in January and February, MCD has been trading mostly sideways since the March 1st peak. During the sideways move the stock has formed a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern.
MCD’s rectangle pattern has formed a resistance at $100 (red) and a $94 support (green). At some point the stock will have to break one of the two levels.

The Tale of the Tape: MCD is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $94 or on a breakout above $100. The ideal short opportunity would be on a break below $94.
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