EC 2 Big Name Consumer Stocks Making All-Time Highs

One thing to note, without delving too much into the fundamentals, is that these two companies have been mentioned among those who faced increase competition and trends shifting in the era of Millennials. For NKE, by the likes of Under Armour (UA) for example — for MCD, from health concerns, shifting tastes, and companies like Chipotle (CMG) and others. Yet the stocks are hitting new all-time highs, which is the most important thing to us, as ‘the chart tells the tale’, to paraphrase Jesse Livermore.

If you look at the long-term charts of these names below, you can see NKE has been more on a steady upward trajectory since 2009 that has accelerated since 2012.

Meanwhile, MCD has been in a trading range since 2011 — is it poised to break out of that range with further upside? We’ll look at that below.

NKE & MCD Long-Term Monthly Chart

Click on image to enlarge

The MCD big picture chart poses an interesting setup. Note that is a long-term view, and we may trade MCD (or NKE) in both directions, including bearishly, in our BigTrends shorter-term option trade recommendation newsletter services.

As you can see on the Weekly Chart below, MCD has been in a range since 2011 — this range has been a somewhat mild narrowing triangle with higher lows (a bullish setup in general). Weekly Percent R on MCD has been strong this year, with pullbacks on that indicator being contained by mid-levels.

Generally, the longer-lasting a range is, the more significant a breakout of it is and the potential move that can occur. In that case, the MCD breakout (if it sticks, it still could pull back into the range) could have some strong upside legs. The previous range on MCD was around 20 points — it’s certainly reasonable to expect 20 points of upside breakout in the stock over the long-term, but this could take a couple years to develop.