MCD
MCD longEntry price: 240-243$
Target price: 254-255$
Chart pattern: symmetrical triangle
RSI: neutral, oscillating near to 50 level
Conclusions: The price already broke up the upper line of the chart pattern, moreover RSI shows further bullish potential. Therefore, the long position is recommended with the entry price above the breakout.
Above information should be treated as informational/educational advice, no professional financial advice.
McDONALDS:FUNDAMENTAL ANALYSIS+PRICE ACTION & NEXT TARGET|LONG🔔There was perhaps no greater source of criticism against McDonald's for missing out on the opportunity to brag about chicken sandwiches than its own franchise owners, but after the fast-food giant's second-quarter earnings report, they should feel like masters of the situation.
McDonald's reported sales and revenue that exceeded Wall Street expectations, thanks in large part to the success of the three chicken sandwiches it launched in February. The company saw double-digit growth in comparable sales in the U.S., not only from the pandemic recession but also on a two-year basis.
The fast-food chain may have been too late to enter the chicken sandwich war, but it is quickly making up for a lost time.
When McDonald's finally entered the fray, there was every reason to believe that its impact would be marginal. Popeyes Louisiana Kitchen had a good 18-month head start on its competitor, and other fast-food and fast-casual chains followed suit to join what was becoming a cultural phenomenon. Even chicken king Chick-fil-A perfected its chicken sandwich to stay relevant.
Nevertheless, McDonald's persisted, seemingly oblivious to what was happening around it, but taking fading fire from its franchise owners, who began to act to develop their sandwich.
They saw that they were losing customers, and they needed to add something to their menu to generate buzz.
That's why launching a corporate-backed three chicken sandwich initiative had all the hallmarks of being too little and too late. Nevertheless, it turned out to be exactly what McDonald's customers were looking for.
Mobile location data from analytics company Placer.ai showed that consumers rushed to McDonald's literally at a moment's notice. She noted that on the day sandwiches appeared on the menu, foot traffic at McDonald's restaurants was up 19 percent from a year earlier, and there was an increase in the days that followed.
Keep in mind that these numbers were compared to attendance rates before the pandemic led to the eventual closure of the restaurants' dining rooms. That said, the growth was even well above 2019 levels.
Placer.ai Vice President of Marketing Ethan Chernofsky said: "The launch was so significant that it fundamentally changed the trajectory of McDonald's.
While it helped lift first-quarter results at the time, it's clear that the second quarter has paid off as well. McDonald's sales figures were up 26 percent from a year ago and 15 percent from two years ago.
McDonald's really hit a marketing extravaganza this past quarter. In addition to the fact that the chicken sandwiches resonated with consumers, the company also had a big hit with its chicken nuggets promotion featuring BTS, the South Korean K-pop (or Korean pop) boy band.
The company also experienced a significant rebound globally, with sales growth of 2.6% in international markets. The growth was more modest than in the U.S., as many overseas markets still face tight COVID-19 restrictions.
However, McDonald's is not stopping there. Building on its partnership with BTS, Travis Scott, and J Balvin, the company announced a new celebrity pairing, this time with rapper Saweetie. The company will introduce the "Saweetie Meal," which includes a Big Mac, chicken nuggets, fries, a drink, and sauces, including Saweetie and Sour Sauce.
McDonald's may not be about to ruin the feathers of leaders Popeyes and Chick-fil-A just yet, as both chains, according to Placer.ai, have seen an increase in traffic themselves. But now, at least, it has a fighting chance. With the recent release of its own Ch'King chicken sandwich by Popeyes, a sister chain of Burger King, the sibling rivalry from Restaurant Brands International could go in McDonald's favor.
Until the company introduced its new chicken sandwiches, McDonald's stock was up much less. Since March, however, the company's stock is up about 20 percent, and the restaurant's stock is now looking better than it has in a long time.
Focusing on its core menu, giving customers and franchise owners the food they want, and smart partnerships have put McDonald's back on top.
MCDX PLF Mobilia #0229 SmartMoneyMid-term analysis (weekly chart)
1) still trending up (above downtrend line, MAs )
2) Profit & Loss chip (PLF) @ 82.32 (strong)
3) Fund still in-flow thou turn weaker (BEE)
Short-term analysis ( daily chart )
1) reaches resistance area 0.520
2) BEE momentum turning weak (dark green candle turns small)
3) Important reversal signal, Perfect Bearish TD9
Trade plan:
Wait for buy point after pullback / correction.
First support level @0.475
Cut-loss @7%
TP@0.610
PLF profit chip >50% booming zone
MCD Downward ChannelMCD has been caught up in the market tides but looks to be quite overvalued. Hitting this trendline from the fall, we're seeing this perfect channel that proves a great MCD short. WIth RSI and Stochastics pointing down, and given the current market volatility, I'm eyeing May puts for a short term swing!
A breakout is happening on MCDToday, we will share our View on MCD
Key elements we can see on the chart:
a) The price is above a resistance zone; currently, we can see a corrective pattern on the edge of that level
b) Now, we are observing a breakout of the structure that has been on a range for 150 days
c) Our Activation level is the green line; if the price reaches it, we will consider that the setup is ready to execute
d) The red line below the structure represents the invalidation level or the stop-loss where we will cancel or close our setup
e) The first fibo extension is the break-even level where we will move our stop loss to the entry area
f) The second fibo extension is the target of the movement we are expecting
g) The risk we will take on this setup is 1% of our capital
h) The ascending movement can last between 3 to 4 months
Thanks for reading!
MCD (NYSE) - Move in bearish trend channelGreetings
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Strategy
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MCD (NYSE) - Move in bearish trend channel
Buy Signal: 215.05Stop: 205.00
Model range play back toward highs.
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