McDonald's Corporation (NYSE MCD)

McDonald's Corporation (NYSE MCD) has been developing a broadening formation during the past months. The breakout of the upper trendline to the upside provides indications of the stock's trend in the intermediate term.

You can observe how the smart money is shifting their focus toward the defensive sectors. The switching has been ongoing during the past four months with benefits for the heathcare, utilities nd the consumer staples sectors.

In the short term, however, the gap printed on 27 September has the characteristics of an exhaustion gap. During the next sessions, I would expect to see some weakness to bring prices to test the rising moving average (about 38$). The stock in the intermediate term is interesting. I would monitor the correction, should it occur, to spot a low risk entry point.