Potential long opportunity - Low Risk, High Reward setup
Updated
MCD has bounced off the bottom of a long term bullish channel and recently broke to the upside of a pennant pattern on the shorter time scale. We are seeing strong resistance in the $200 price area (+/- ~$5) from both historical price action, fib retracement, and psychological resistance. Positive trade news looks like it has yet to significantly impact MCD so this might just be a good time to get in on a long stock position or even a call option trade. Setting a stop loss just below the bottom of the long term bullish channel, and setting a profit zone at the top makes for about a 10:1 profit/loss ratio. Being a dominate multi national brand, a decent dividend, and with investors such as Warren Buffett, this might be a good opportunity to get in on a long term play. Would love to hear your thoughts!
Note
Stock market continues to rip today on a macro level. MCD gained about .7% closing the day above the pennant and .236 fib. Not completely out of the mud yet on this play. Really want to see $200 broken to confirm bullish momentum. If the macro continues to rip we will break $200. We have to see how MCD reacts when the market slows down to have a better understanding of where this is heading. Still in my position and will continue to hold until i see MCD falling below critical levels around $195
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.