Support around $243-$245, earnings set to provide more insight

The support here on the weekly chart for McDonald’s is still holding up, even with the current market sentiment. The earnings on Monday will offer more guidance for the near future and could be the new catalyst here for either a move lower or pop higher. Currently, the pre-market price is around $253.15 a share, with the support highlighted by the blue channel on the chart. We can see the price recorded a low of $243.54 a couple of weeks back but managed to close higher and more importantly above the key support of  $245.72. A break below this level following the earnings may instigate a sell-off towards the lows of 2022 ($226-$230). Towards the upside, there is resistance around $262.59, which is last week’s high. A move above it would reiterate the strength of the support below, although it is not guaranteed that the price would continue higher. Though it may build some momentum for a push toward $270. Looking at the technical indicators, the MACD is still negative but there are minor signs of a possible hidden divergence. The RSI has also edged a little higher as it now reads 38.