What is concerning is that the short-term sideways pattern seems to be developing into a bearish head and shoulders pattern, which if confirmed by breaking below the 287.50-285.38 neckline region, could trigger a fast decline towards the 38.2% Fibonacci retracement of the previous upleg at 277.74. This is where the 200-day exponential moving average (EMA) is hovering. Hence, should sellers breach that base too, the downfall could aggressively expand towards the 50% Fibonacci of 271.56.

The technical indicators reflect diminishing bullish pressures. The RSI is looking to extend its downtrend below its 50 neutral mark, while the MACD keeps decelerating below its red signal line.

Nevertheless, if the stock manages to rebound near its 20-day EMA at 291.23, which has proved protective over the past couple of sessions, it may stage another battle within the 297.73-299.10 resistance territory. A successful penetration higher could meet resistance near the lower boundary of the broken bullish channel around 303.80. If the bulls pierce through that barrier, the attention will immediately turn to the long-term ascending line at 313.25, which connects all the highs from 2019, while the channel’s upper boundary seen at 315.30 could be another important region to watch.

In brief, McDonald’s stock might be preparing for its next bearish phase, with the confirmation signal expected to come below the 287.50-285.38 area.