Up to this point, we've been focusing on breakout trades - trades that need to push above a resistance level before they become buyable. Now, we'll switch to a range trade setting up in shares of fast food giant McDonald's ( MCD).

Unlike the breakout trades we've looked at, we just want McDonald's to keep doing more of the same. That's because shares have been stuck in a well-defined uptrend for the last year. Trend line support has done a very good job of acting like a price floor for shares of MCD in the past. If it can pull that job off again, traders are looking at an optimal entry opportunity this week to ride the trend in April.

When trading a trend, it's crucial to wait for shares to actually bounce off of trendline support before buying. That's because trend lines do eventually fail -- and when they do, you won't want to be holding the bag. The bounce tells us that MCD can still catch a bid at support, a factor that dramatically reduces the risk of buying shares.

Wait for that next bounce before putting on an MCD position.

McDonald's, one of Renaissance Technologies' holdings, shows up on a list of 3 Top Dividend Stocks for 2012.

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