MCD Bullish BreakoutA consumer staple defensive, unaffected by tariffs. ER May 1, but would need big miss (like Jan 18) to drop, and in any event lower revenues already in guidance and therefore estimate. Indebted, so benefits from no-hike policy, not really affected if USD falls.
Just broke out, so buy retest of breakout line for top of channel. 2% SL below last low.
BUY 191 SL 187 TP 214 RR 5.75 RISK 2.09%
MCD
Trading Edge 2020 Portfolio -Trade #5- MCD - Call Debit SpreadTicker: MCD
Position:
- Feb 14th Expiry
- Long 210 Strike call = 3.78 - Delta 0.92
- Short 212.50 Strike call = 1.90 - Delta 0.62
- Net cost = $1.88
- Break even at expiry = $211.88
- Max profit = $0.62 (33%)
- Run 5x contracts = $940
Profit/ Exit targets:
- Exit position if MCD closes below the 21 ema on the daily
- Max profit is target, you may wish to run 80% max value of spread as your exit ($2.376 GTC sell order for spread)
Rationale:
- MCD has bounced off the 21 ema
- MACD is signaling a potential bullish continuation on both daily and lower time frames (4hr, 1hr etc.)
- MCD is within 4% of prior highs
- Moving averages are all stacked bullishly
- Appears to be in a solid uptrend, looking for some near-term trend continuation
-TradingEdge
“Everything Bubble”: McDonald's This Is How the “Everything Bubble” Will End.
McDonald's shuts 300 restaurants in China as coronavirus spreads.
Fast food chain sets up epidemic task force for virus, which has killed 132 people
McDonald’s has closed hundreds of restaurants in China and added its name to the list of global companies bracing themselves for the impact of the coronavirus outbreak, amid signs of a mounting economic effect alongside the human cost.
The fast food chain said it had shut about 300 restaurants and set up a epidemic task force in response to the virus, which has killed 132 people and infected more than 6,000, particularly in Wuhan, the capital of Hubei province.
Although McDonald’s didn’t open a restaurant in mainland China until 1990, the country has become one of its largest and fastest-growing markets, with about 3,300 restaurants and 1,500 more planned by 2022.
Its operations in the country make up nearly a tenth of its worldwide restaurant count, nearly 5% of sales and 3% of operating profit.
“China is a critical market for us and we’re very concerned about the situation over there,” said the chief executive, Chris Kempczinski, although he said the overall impact on profits would be fairly small if the virus remained relatively contained.
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MCDONALDS (MCD) On Its Way To Market High
Very positive forecast for Mcdonalds!
yesterday the market has retested a broken resistance that turned to support.
after that, we see a very strong bullish reaction!
for us, it signifies that most likely in the nearest future the market will reach the current high.
the initial target is 214
the second target is 220
"McDonalds: Top and Bottom Analysis" by ThinkingAntsOk4H Chart Explanation:
- Price is on an Ascending Channel.
- Price broke the Descending Trendline.
- Bearish CCI indicating a correction from here.
- After it, potential to move up towards the top of the Channel.
Weekly Vision:
Daily Vision:
Updates coming soon!
MCD Attempting to BottomMCD is struggling to form a short-term bottom at a non-support level. The stock had been under heavy distribution which triggered High Frequency Traders selling short as well as Pro Traders selling short, even while new Retail App Broker Investors were buying into the downtrend. Buy on the Dip strategies are in play, but the large lots overwhelmed the retail small lots. There is no Dark Pool Quiet Accumulation in this bottoming attempt.
MCD – Bullish Reversal to Gap Fill– Lovin’ ItTrade Entry
I am tapped for capital with other trades actively working.
If I were to enter, this would be my entry choices:
Jan. 24 Expiry. 200/205 Put Credit Spread. $2.50 credit. Risk and reward are even $2.50.
If you want to play earnings (which looks like good idea), move out to Jan. 31 or do both dates.
MCD above $205 at expiry keeps the whole credit.
Stops – MCD at $198 exit trade.
Exit at 50% profit or hold to expiry if looking bullish.
Chart Details
Bullish breakout of bear flag.
Bullish EMA cross and price 10WeekMA cross.
Price should head up to fill gaps IMO. Probably consolidate at each gap.
Watch RSI at 75 for bullish slowing.
Daily and Weekly trend both bullish. Looks good.
Previous MCD Chart
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$MCD missed last four earnings without ill-effectMCD is a safe solid stock, although oddly in XLY rather than XLP.
It has missed the last four earnings, and the pullbacks from those misses are fairly mild recover quickly. Even the double whammy of a miss and loss of CEO in Q319 started to recover within days. Note in Q418, the stock only fell 11.5% against a general market decline of 20%. In this respect it is quite similar to KO (although that is in XLP), another purveyor of junk consumption.
Assuming the current trend continues, a pullback on another earnings miss of 3.84% or less gives you a safe stock to return to $220 in 2020, and the PE return to the highs of 28.
Note MCD is a DJIA component, and risks being dragged on any macro DJIA collapse (election, rate hikes etc).