Technical indicators can be helpful for investors to target stocks which are starting to accelerate and pick up steam. A popular one is a bullish crossover known as a “Golden Cross” where a stock’s 50-day moving average climbs above its 200-day moving average. When that happens, it can set off alerts for chartists and technical analysts, and lead to a strong uptrend for the stock.
One top stock which recently made this crossover is fast food giant McDonald’s (NYSE:MCD). Last week it made the crossover as investors have become more bullish on the stock of late. Not only did it recently announce a 6% increase to its dividend but it has also benefited from analyst upgrades due to strong sales numbers in the U.S.
McDonald’s has proven to be a resilient business to invest in over the years as it has shown that it can adapt to changing market conditions. While it benefited from raising prices amid soaring inflation, it has also offered attractive value options for consumers looking to save money. That versatility allows the business to do well in a myriad of economic situations.
Year to date, McDonald’s stock is up just over 2% but in the long haul this can be a solid investment to pick up. And now, with shares of McDonald’s picking up steam, the time could be ideal for investors to add the stock to their portfolios both for the dividend income they might generate from it plus the gains they could accumulate in the long run.
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