MCD: Strong Support to Make Selling Short DifficultMCD 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.
MCD
$MCD - Sell opportunitySymbol: $MCD
Prediction : Short
Daily : The price break the last lower low, with a bearish run, it breaks the trendline, now it's time for a pullback.
4H: The price breaks the EMA 50, it start to consolidate on a support.
1H: I wait a pullback to come near the 61.8% zone and the last support which is now a resistance.
DPZ potential growthDPZ market cap. 11.3B vs MCD market cap. 130.6B
DPZ has potential to grow compared to fast food giant MCD
Long term idea without predefined stop loss and target profit.
Disclaimer: I do not provide investment advice and I am not a qualified licensed investment advisor.
McDonalds dilemmaThe 99% of the global population love McDonald's burgers, but that's not my concern. Basically, this company has been working aggressively on several initiatives to shed its image of an unhealthy, junk food but in fact, it is... and if they want to improve margins and consequently, earnings... is very hard to get it in the short term. Over here you will find a massive divergence because Wall Street and I have different targets. Wall Street points to $183 a share and I am pointing to $146 - $139.
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$MCD Overbought at Resistance$MCD Overbought at resistance after announcement yesterday of corporate labor cuts.
Assuming 171.10 resistance holds by close today, expecting a retracement back to atleast 167.00-168.00 level by the end of next week.
Ideally would like to see a close today at or below 171.10.
MCD - A 16% Upside PotentialHere are some quick fundamental facts -
Net income has been increasing for the past 3 years.
Operating margin has been increasing for the past 3 years.
Total cash flow from operating activities have been falling for the past 3 years.
Both ROA and ROE have been increasing for the past 3 years.
Dividend has been increasing for the past 3 years.
Latest Current and Quick ratio at 1.84 and 1.54 respectively.
Overall, the fundamentals on MCD look strong.
Coupled with the recent fall in price, it might be a good time and opportunity to start accumulating into MCD.
Looking to long between 153 to 155, with stops below 150 and a target at 179.
Disclaimer - this is not a trade call. Ensure you have proper trade and risk management plan before engaging the financial market.
MCD: LONG - Correction overdoneTHIS IS FOR NOTE TAKING PURPOSE ONLY.
MCD fell sharply on 2/5 following soft forward guidance. Price guidance still at 170.
DAILY Chart:
- Formed bottom on 3/5. Price @ all time low @ 146.84, MACD Histogram @ -.6560 compared to 2/5 where price fell to $153.86, MACD Histo @ -1.2298 =>Bull Divergence
- 3/9: MA(4) cross-over MA(9) , MACD HISTP Crossed centerline to +
4 Hr Chart confirms Daily Chart trend.
MCD Inside day long opportunity.So yes, the pull back that many investors had been waiting for over an year finally came,
although it's way harder than people may expect, it still create many trading opportunities for both bulls and bears.
Here I got this MCD trade , after it's 15% pull-back it gave an inside day, and I would like to long if it's able to break to the upside.
Let's see how it goes!
Would you like fries with that Dip?Fat America is still alive and well.
Last I checked the Fed isn't hiking the Burger rates.
MCD continues to perform and even if we see some flatness and downside in the next couple weeks this is still a good buy.
Bearish on the average Joe's ability to choose proper sustenance
Bullish on burgers and fries.
Also check out KO for a nice cheap beverage to quench your thirst for green candlesticks.
October 24 Earnings: McDonalds - The Rise Of The WageMcDonald's comparable sales will be aided by continued investments and menu innovation.
Alongside above mentioned factors, its international presence with a softer USD will aid overall margins.
However, with rising wage growth and soft quarterly restaurant spending globally, I expect profits to be under pressure.
Guidance should underwhelm with the aforementioned factors.
I am starting McDonald's with a $150 PT for the post-earnings move.
A tight stop well over ATH at $170 is advised.
MCD Bat, demand zone and 150 fig combinationWhenever there is a huge uptrend, those who are not willing to chase high price always say that they'll wait for pull back.
While there are still people contradicting with themselves that when a pull back actually happens, they change there mind and think,
"the uptrend is over , this is the top!!!!" and starting shorting the stock.
This makes no sense to me, as I'm always willing to chase high with acceptable risk and set-up, and if it did give a pull back, I'm more willing to long.
This is the case for MCD, or even for the stock index.These years, too many people told me that they may wait for pull back to long SPY,
but when a small pull back happens like the past few days, they change their mind to take the short and believe that's the top..
Plan your trade and trade your plan, and don't change your mind that easily !