Shares of McDonald's (MCD) - Get Report are struggling a bit today. The stock is off over 1% after trading at new weekly highs in the early going. This fade is adding more evidence that a significant high may now be in place.

In the near term McDonald's bulls should keep a keen focus on the May low. A clear takeout of this level could spark a deep selloff.

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In mid-April, McDonald's looked quite toppy as well. The stock had reached fresh 2016 highs earlier in the month as it stretched the gain off the February lows to just over 15%. On April 20, McDonald's put in a key downside reversal after opening the session higher. The next day, following a strong first-quarter earnings report, the stock was hit with a powerful selling wave.

Despite the post-earnings damage, McDonald's recovered quickly after holding key support near the January/February highs. The went on the make new highs in early may but since then the toppy action has returned.

If McDonald's is unable to reach a new high over the next week or so investors should begin to expect a deep pullback. A break of the early May low of $126.50 would leave behind a significant amount of supply. If the April low fails as well, which sits near a major support area, McDonald's will have put in a downside reversal on its monthly chart. This type of a breakdown could drive shares into deeply oversold territory before a bottom is reached. The target then would be the 2015 high near $120.

Disclosure: This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.