With about an hour to go in today's sessions, McDonald's (MCD) - Get Report is extending its early gains. The stock is adding more than 5%, its second-best performance of the year, as buying pressure surges. This impressive post-earnings move is a sharp reversal from Monday's weak action.

MCD has been in a steady uptrend since its last earnings report in late April. The streak of higher monthly highs extended to six straight during this phase as the post-election gain stretched to nearly 40%. It wasn't until mid June that a clear decrease in upside momentum was apparent. MCD began tracing out a very narrow consolidation soon after. This area will now provide the footing needed for a fresh rally leg.

Yesterday MCD dipped to new July lows on fairly heavy selling pressure. This pre-earnings fade is adding additional fuel to today's ramp. MCD now has a very solid support zone in place from $158.00 to $154.00. This key zone includes the stock's early July high as well as Tuesday's breakout gap.

A dip back down to this area should be considered a low-risk entry opportunity for patient investors. On the downside, a close back below $151.00 would violate the July lows, indicating more trouble ahead.

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Long MCD