McDonald's Corporation (MCD) shares rose about 2% during pre-market trading on Tuesday after the company reported a better-than-expected drop in comparable sales between late March and May. The iconic restaurant chain reported a 29.8% drop in comparable sales over the COVID-19-impacted period, consisting of a 12% drop in the United States, a 53.4% drop in operated international markets, and a 26.1% drop in licensed international markets.

The company expects to invest about $200 million through an incremental marketing contribution across the United States and international operated markets to accelerate the recovery and drive growth. In addition, McDonald's is providing additional targeted financial support to some franchisee organizations that have been negatively affected across its system.

Last week, Barron's listed McDonald's among its eight dividend-paying stocks that will make it through the pandemic in good shape. According to the publication, McDonald's could enjoy greater demand given the outlook for ongoing low interest rates and political pressure on buybacks.

Chart showing the share price performance of McDonald's Corporation (MCD)

From a technical standpoint, McDonald's stock rebounded from trendline support and the 50-day moving average at around $182.82 this week. The relative strength index (RSI) remains at moderate levels with a reading of 52.61, but the moving average convergence divergence (MACD) is still at risk of a bearish crossover. These indictors suggest a lot of ongoing uncertainty surrounding future price direction.

Traders should watch for a high-volume rebound from trendline support and the 50-day moving average at $182.82. If the stock breaks out, traders could see a move toward upper trendline resistance at around $206.00. If the stock breaks down, traders could see a move to retest reaction lows of around $168.00 over the coming sessions, although the intermediate-term trend remains bullish at the moment.

The author holds no position in the stock(s) mentioned except through passively managed index funds.