Shares of McDonald's (MCD) rallied sharply during the 1/6 (Friday) session, opening up a bullish outlook based on the technical picture in the daily chart.MCD Daily Chart 1/9(click to enlarge)Consolidation:- The daily chart shows that MCD has been trading in a consolidation mode throughout 2016. - At the end of the year, after making a low on the year just above 110, MCD rallied sharply and tagged 124.00 before retreating.Breakout:- Note that the upswing since November pushed above a falling resistance. - Price also broke back above the 200-, 100-, and 50-day simple moving averages (SMAs).- Furthermore, the RSI pushed above 70, which reflects initiation of bullish momentum.More Bullish Signs:- As price retreated from 124.00, the price action tested the markets resolve.- But, we can see that there were buyers above 118.00, which was a support/resistance pivot.- The Friday rally formed a bullish engulfing candle, which suggests bulls are strong at least in the short-term.- Price bouncing off the SMAs after crossing them is a bullish slingshot signal.- The RSI holding above 40 shows maintenance of the bullish momentum.- Finally, the RSI also shows what's call a bullish reversal signals (higher price lows corresponding to lower RSI lows, AFTER establishing bullish momentum).Reward to Risk:- A buy from around 120 with a stop below 118 and a target of 124.80 has a satisfactory reward to risk, and decent probability.- The confluence of bullish signals suggest an aggressive target to 128 for example is still viable and has stronger reward to risk. - Potentially, if the market is indeed turning bullish, the 132 high in 2016 could be in sight for 2017.