MCD - Death Cross & Possible Long Entry ForecastWe are sort of in the middle of downtrend. I like to wait for clear trend reversal.
Should be around January/February IMO unless Death Cross flips and price goes above moving averages.
There is also a bear flag formation under the death cross.
What I see as most important - the biggest selloff happened when price crossed under 50DayMA , not the death cross.
This is the reason I am watching SPY and AAPL moving average for downturn.
Next trend on Daily is bearish. Next trend on Weekly is bullish.
To me, this mixed signal implies that the downtrend for MCD will be short as the next Weekly trend is bullish.
When the MCD downtrend stops, this would be a good bullish entry point as the Weekly trend will flip bullish as price crosses back above moving average.
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I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Disclosure - I am long MARA, GBTC, BTCUSD, GDX, and VIXY.
Short SPY, AAPL
MCD trade ideas
MCD Public sentimentI know shorting this is not wise, however MCD public sentiment has been steadily declining despite its still incredible popularity, MCD has been in a HUGE bull run, however in my opinion we will see the rise of healthier alternatives and more traditional fast food chains, (Subway, Pizza restaurants)
MCDONALDS: Buy OpportunityThe price reached the support zone between 192.00 and 190.00 levels. In spite of a breakout below SMA200, which gave us a trend reversal signal, the market can continue the previous uptrend. I refer to a similar structure, which the market passed in 2016 and 2018 years.
It is possible to think about buying based on the confirmed reversal signal from the support zone or following a breakout above the local downtrend line.
Stop orders must be placed below 190.00 support level. The main profit target should be at 221.00 resistance.
MCD Long analysisAs always using support and resistance levels, I also checked some fundamentals as well as hedge funds and institutional investors' expectations and also because McDonald's is well-known trademark I don't expect it to drop below 170-175, look at horizontal the support line I drew.
So I entered long position and might enter again even if price drops as I believe in long term (next 6-12 months) to reach price of 235$.
MCD - decent risk reward ~$192Chart is fairly self explanatory. We have a high volume bounce on a multi-year trend-line (est. 2016). Last week we printed an inside week which indicates an indecisive market. I think we hold the bottom-trend, but if you enter without a plan, you could experience some drawback if we revisit the bottom-trend. Be patient.