Shares of McDonald’s Corp., the largest fast food chain, are correcting in a local trend at 289.00.

On the daily chart, the price is retreating from the resistance line of the downwards channel 258.00–243.00, approaching annual highs.

On the four-hour chart, today there may be the first accentuated attempt to test the local high of 292.00. The probability of breakout the level is much higher than the decline. However, in case of a reversal, a correction to the support level of 270.00 is possible.

Technical indicators maintain a buy position: fast EMA on the Alligator indicator are above the signal line, and the AO histogram forms correction bars above the transition level.

Trading tips

Long positions may be opened after the price rises and consolidates above 292.00, with the target at 301.00. Stop loss is 286.00. Implementation period: 7 days or more.

Short positions may be opened after the price declines and consolidates below 285.00, with the target at 275.00. Stop loss — 290.00.