MCD: Strong Support to Make Selling Short Difficult
MCD stock is very popular with the retail trading groups. The footprint of the retail trader systems trading the stock is very obvious on this chart. The candlestick patterns are all indecisive, there are no strong easy runs in either direction, and lots of wicks and tails, which is where retail brokers are reaping huge profits. Overall, it is a very messy looking chart which makes for tough swing trading in general.
Apparently some retail system has targeted MCD for selling short. But alas, it seems the system doesn’t read charts very well. The support level is strong from the 2018 sideways trading range and it will be a huge challenge to sell short into this support level. Just one fine example of why retail systems that rely on software to finds stocks to trade don’t work. They are not nearly sophisticated enough.
Apparently some retail system has targeted MCD for selling short. But alas, it seems the system doesn’t read charts very well. The support level is strong from the 2018 sideways trading range and it will be a huge challenge to sell short into this support level. Just one fine example of why retail systems that rely on software to finds stocks to trade don’t work. They are not nearly sophisticated enough.
Martha Stokes, CMT
ttrader.im/tv-candlesticks
Learn how to use the technical patterns of each market participant for better trade planning.
ttrader.im/tv-candlesticks
Learn how to use the technical patterns of each market participant for better trade planning.
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