I first highlighted McDonald's (MCD) stock back in March this year ahead of earnings when the shares were trading at $189, and suggested there was more to come which has certainly been the case, with another week of solid gains with the stock closing on Friday at $211.24. The next quarterly earnings report is now set for the 26th July and based on analysts’ forecasts, EPS is expected to be $2.06 against $1.73 last time and should this be achieved or bettered, expect to see further gains for the stock.

From a technical perspective, there is nothing to suggest any short term weakness. There is no evidence of any selling by the market makers and with light volumes now ahead on the volume histogram to the right of the chart, any move through to $215 and beyond should be unchallenged and therefore relatively quick. The trend monitor indicator remains firmly blue and supportive of the bullish sentiment since its transition in March. However, it is important to remember the light volume of last week was solely due to the 4th July holidays, and thinner trading conditions, so nothing sinister in the lower volume accompanying the price action.

(Click on image to enlarge)