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McDonald's (MCD) Stock Serves a Breakout, Where's the Volume?

NEW YORK (TheStreet) -- If you bought McDonald's (MCD - Get Report) in 2003, 2004, 2005 and even in 2011, you would be a happy investor. But MCD has been struggling since 2012 on the fundamental side and technical sides.

In this longer-term chart of McDonald's, we can see why it was a favorite of investors. We see a long and steady uptrend.

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This second chart of MCD, above, zeros-in on the past two years of price action with the On-Balance-Volume line (OBV).

Prices have made a new 52-week high, breaking out in price, but the OBV line has not made a new high. One of the old sayings on the Street is that volume precedes price, meaning that a stock has to be bought and accumulated before it goes up.

The OBV has edged up a bit, but is certainly not leading prices and certainly not making new highs. Breakouts to new 52-week highs should be accompanied by significantly greater volume. For MCD, it should be on the order of 15 million to 20 million shares.

We can...