Good Time To Buy MCD??Reasons To Invest In McDonald's
Long-Term Bullish Trend: The overall long-term trend for McDonald’s stock is bullish, indicating strong growth potential.
Support at 200 SMA on Weekly Chart: The stock has pulled back to the 200-day Simple Moving Average (SMA) on the weekly chart, a key support level.
Historical Price Bounce: McDonald’s stock has bounced at this price level twice before, showing a pattern of support.
Monthly RSI at Pandemic Lows: The Relative Strength Index (RSI) on the monthly chart is at levels not seen since the pandemic, suggesting it might be oversold.
Low Weekly RSI: The RSI on the weekly chart is also low, indicating a potential buying opportunity.
Bullish Divergence: There is bullish divergence on both the daily and weekly charts, which can signal a reversal or continuation of an uptrend.
Bearish Monthly Candles: There have been four consecutive bearish monthly candles, so a move higher is more likely as the stock may be due for a rebound.
Potential for 20% Gain: A return to the all-time high would result in a 20% gain from the current price.
MCD trade ideas
McDonald's Elliott WaveHello friends
In McDonald's stock, we see the formation of a 5-wave impulse pattern that has been completed. These 5 waves can be considered as wave A or 1. Now, with the break of the trend line at the end of wave 5 and the retreat towards it, we expect the price to rise to the $262 range. This increase can occur in the dominance of a zigzag or any corrective pattern. Stop loss can also be considered at 245 which is an important support.
The second target of the $280 range can be considered.
Be successful and profitable.
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MCD, 200 sma on the weekly BIG Support!! One could buy shares long term, or put sales or bull put spreads *once / if* MCD gets down into the $244 price zone.
Gonna be super boring. But overall, likely profitable. MCD hasn't hit the 200 sma(on adjusted for dividends) chart since covid. When it bounced very hard.
:-)
The Golden Arches at a Technical Crossroad .McDonald's Corporation (NYSE: MCD), a stalwart in the fast-food industry, is currently navigating turbulent waters. As of the latest market close, MCD is priced at $253.70, reflecting a slight dip in the pre-market at $253.44. The stock's technical indicators and recent price action suggest a critical juncture, providing both potential risks and opportunities for traders and investors alike.
MCD's price action is currently showing signs of bearish pressure, as evidenced by the recent downturn in the stock's weekly candlestick pattern. The closing price of $253.70 positions the stock just above its immediate support level of approximately $252.80. This level is crucial as it marks the lower boundary of the recent trading range and could serve as a pivot point for future price movements.
Relative Strength Index (RSI): With an RSI of 33.82, MCD is approaching oversold territory. This typically signals that the stock may be undervalued and could be due for a bounce. However, caution is advised as RSI alone isn't a definitive buy signal.
Short-term MAs (10, 20, 30-day EMAs and SMAs) are all indicating a bearish trend as they align above the current price, suggesting downward pressure.
The 200-day EMA at 253.41 is acting as a key support level. A sustained break below this could open up further downside risks.
MACD: The MACD level at -6.86 indicates a bearish momentum, as the signal line is positioned below the MACD line, reinforcing the downtrend.
The momentum indicator at -12.99 shows a bearish outlook, yet the proximity to oversold levels hints at a potential reversal if buying interest materializes.
Stochastic Oscillator (%K at 14.74): Suggests a buy signal as it indicates the stock is oversold and could be due for an upward correction.
The weekly chart reveals a clear downtrend with lower highs and lower lows forming since the peak earlier in the year. This bearish pattern is compounded by the stock trading below the Ichimoku cloud, which typically suggests continued downward momentum. The volume profile shows a decline in buying interest, as seen by the diminishing green bars, underscoring the selling pressure.
Recent news highlights a mixed sentiment towards the fast-food sector. Despite inflationary pressures and shifting consumer preferences, McDonald's has shown resilience in its financial performance. The latest earnings reports indicate steady revenue, but the market remains cautious amid broader economic uncertainties.
Support Levels: Immediate support lies at $252.80, followed by stronger support at the $250 psychological level. A break below these levels could accelerate the downward movement towards the $245.00 - $240.00 range.
Near-term resistance is seen around $260.00, aligning with the 20-day SMA. A breach above this could signal a short-term bullish reversal, targeting the $270.00 - $275.00 range.
Trade Recommendation
Short-Term Long Position:
Entry: Consider entering a long position if the price rebounds off the $252.80 support level with confirmation (such as a bullish candlestick pattern or increased volume).
Target: Aim for the $260.00 resistance level, with a potential stretch goal to $270.00.
Stop Loss: Place a stop loss below $250.00 to protect against further downside.
Short Position:
Entry: Enter a short position on a decisive break below $252.80 with strong volume.
Target: Look for a move towards $245.00, and further to $240.00 if the bearish momentum persists.
Stop Loss: Set a stop loss above $255.00 to mitigate risk if the breakout fails.
While McDonald's (MCD) is teetering on the edge of critical support, its near-oversold status presents a potential short-term buying opportunity. However, traders should remain vigilant for further bearish developments that could lead to additional downside. The interplay of these factors makes MCD a compelling candidate for both long and short strategies in the upcoming sessions.
MCD eyes on $269: MickeyDee's needs to bounce hereMCD has been retracing from $300.
Now at a major support around 269.
Strongest support above the 250 area.
$ 268.98 - 269.67 is the exact zone of interest.
$ 250.05 - 251.41 is the next strong support below.
$ 273.05 - 274.41 is the immediate resistance above.
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MCD LONG : GREAT LONG FOR A GREAT RRR
From a technical point of view, the bullish channel that I am sharing, has been faithfully mainteined by the price, since 2018 (except for the covid crisis which catalyzed an historical volatility much greater than the average volatility of the stock). The current price, compared at revenue, it is definitely interesting. In a context of increasing volatility, holding a defensive stock like MCD could be a winning opportunity in the portfolio
MCD Taking a biteNYSE:MCD Multi-timeframe analysis indicates strong momentum on to the upside giving a higher probability that a trend reversal could be in play.
On the daily, we see short term bullish price action confirmed by volume (denoted by the highlighted circle. These charts in combination allows us to initiate a trade to the long side.
McDonald’s Misses Profit Estimates Amidst Middle East Conflict:McDonald's Corporation (NYSE: NYSE:MCD ) falls short of quarterly profit estimates for the first time in two years. Amidst a backdrop of geopolitical tensions in the Middle East and evolving consumer preferences, the iconic fast-food chain faces challenges in maintaining its market dominance. This article delves into the factors behind McDonald's recent performance and the broader implications for its global operations.
Growing Consumer Landscape:
In an era where consumers are becoming increasingly budget-conscious, McDonald's, known for its affordability, is witnessing a shift in consumer behavior. CEO Chris Kempczinski acknowledged that consumers are becoming more discerning with their spending, signaling a departure from traditional consumption patterns. This shift underscores the need for McDonald's to reassess its pricing strategy and value proposition in the face of changing market dynamics.
Impact of Middle East Conflict:
The ongoing conflict in the Middle East has cast a shadow over McDonald's international sales, particularly in regions where geopolitical tensions are high. With CFO Ian Borden's warning of a sequential decline in international sales, the company faces headwinds in key markets such as China, where economic sluggishness compounds the challenges posed by geopolitical unrest. Western brands like McDonald's find themselves embroiled in controversy, facing protests and boycott campaigns over perceived political affiliations, further exacerbating the situation.
Franchise Disputes and Public Relations Challenges:
McDonald's recent controversies, including backlash from franchises in Muslim-majority countries and legal disputes in Malaysia, highlight the complexities of operating a global brand in a politically charged environment. The company's acquisition of its Israeli franchise and legal actions against boycott movements underscore its efforts to manage reputational risks and safeguard its business interests. However, navigating geopolitical sensitivities while maintaining a consistent brand image remains a delicate balancing act for McDonald's.
Looking Ahead:
As McDonald's grapples with the fallout from missed profit estimates and geopolitical tensions, the road ahead remains uncertain. The company must adapt to evolving consumer preferences, mitigate geopolitical risks, and navigate public relations challenges to regain its footing in the global market. Strategic adjustments in pricing, marketing, and corporate governance will be crucial as McDonald's seeks to restore investor confidence and sustain long-term growth.
Technical Outlook
Despite the miss in profit estimates, McDonald's stock ( NYSE:MCD ) is up 1.02% trading with a moderate Relative Strength Index (RSI) of 53.12.