MCD has a gap to fill - upside potentialhi traders
MCD looks pretty good here.
A higher low is confirmed but still below the key resistance.
Once the price breaks the resistance, the long position can be taken.
There's a gap to fill which may happen in the next few weeks.
Entry, target, stop loss are shown on the chart.
Risk-reward ratio: 3,37
Good luck
MDO trade ideas
Options With McDonalds1. Current Price and Trend Analysis
Price: $293.34.
Trend:
MCD has been range-bound, with a recent bounce off $284 support.
The price is below the 50-day EMA ($299.22) but above the 200-day EMA ($270.36), indicating a mixed trend (neutral to slightly bearish in the short term, but long-term trend is intact).
The recent dip shows the stock testing support, with consolidation and a small upward move suggesting a potential recovery.
2. Key Support and Resistance Levels
Support:
$284: Strong support (tested multiple times in the past, most recently in the highlighted zone).
$270: Next major support near the 200 EMA if the $284 level fails.
Resistance:
$299-$300: Immediate resistance (near the 50 EMA and psychological round number).
$317-$320: Major resistance from previous highs (if the recovery sustains).
3. Indicators
RSI:
At 68.44, nearing overbought territory, indicating upward momentum but caution against entering long positions without confirmation.
MACD:
MACD line is above the signal line, suggesting bullish momentum is building.
However, the histogram shows slowing momentum, meaning buyers may lose steam at resistance levels.
Volume:
Relatively low on recent upward candles, suggesting weak buying conviction. Watch for increased volume to confirm any breakout.
4. Option Trading Considerations
Bullish Case:
If MCD breaks above $299-$300 with volume, consider:
Call Options: Targeting a move toward $317-$320.
Expiry: At least 1-2 months out to allow time for movement.
Strike Price: $300 or $305 (near the breakout level).
Bearish Case:
If MCD fails to hold above $293 or rejects $299-$300, consider:
Put Options: Targeting a move back to $284 or lower.
Expiry: 2-4 weeks out for shorter-term plays.
Strike Price: $290 or $285.
Neutral Strategy (Range-Bound):
If MCD remains range-bound between $284 and $299, consider:
Iron Condor: Sell calls at $300 and puts at $284 while buying protection further out (e.g., $305 call and $280 put).
Credit Spread: Sell options near the expected levels of support/resistance.
5. Final Recommendations
Key Levels to Watch:
$299-$300: A breakout confirms bullish momentum.
$284: A breakdown suggests bearish continuation.
Risk Management:
Watch for upcoming earnings in 16 days, as implied volatility may increase, potentially inflating option premiums.
Monitor volume and price action at critical levels before entering any position.
THIS AINT FINANCIAL ADVICE DO YOU!!
McDonald’s (MCD): Crisis Management and Market ReactionWhat a perfect flat this is on McDonald’s. Already back in the range and finished the wave ((ii)) at the 50% Fibonacci retracement level. Far more downside is expected for $MCD. If we are right about this intra wave count, we should see the level of wave ((iii)) to be at a minimum of $258.5.
The outbreak that caused the big drop was linked to slivered onions used in Quarter Pounder burgers, which affected 104 individuals across 14 states and resulted in one death. To address the crisis, McDonald’s will invest $35 million in marketing and advertising campaigns to rebuild customer trust and foot traffic. Additionally, $65 million will be directed toward franchisee support, including deferrals on rent and royalties.
To recover from this significant image damage, it will likely take much time for NYSE:MCD to resolve these challenges. Therefore, it would also be valid if NYSE:MCD sweeps the range low at the level of $245 before coming back to at least the range middle.
MCTrump Supreme with a side of EBOLA LargeAfter Ebola news failed attempt to blame Onions and get the market down like Chipotle once did. It is only under my speculation, seeing the Justice League eating McDonalds on Trump's private plane that makes you wonder. Why is the marketing so heavy labeling McDonald as real American Food?
I believe investments are going heavy on the company and the bearish short movement was only a way to acquiring at good discount the Franchise.
Mcdonald has a heavy support/demand at the $290 which seem unbreakable since the first run up as shown in the chart. I only spend minutes on the $288 once it dropped and quickly jumped up to the $290 safety net.
I believe McDonald started an accumulation phase that will lead to a public participation phase to around the $325 area. The reasoning behind the call to the price is that McDonald has shown that at the end of the 3 phases at distribution, it gains approximately 30, if repetition is at practice, I see this as a bullish 321/325/330 area.
MCD eyes on $301.51 above, 285.59 below: E-coli fallout rangeFollowup to my previous long and exit calls (click).
MCD got some bad news with an e-coli event.
The immediate drop has bounced to Genesis fib.
Just below is a Golden Covid fib for some support.
$ 301.51 is the immediate hurdle.
$ 298.47 could offer some support.
$ 285.39 below is now crucial support.
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Good thing we exited MCD recently:
And bought some Wendy's:
With Pepsi to wash it down:
And that's probably about it for fast food binge.
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Waiting for entry triggerBull Case for McDonald's (MCD) Stock
Global Brand Strength: McDonald's enjoys one of the most recognized brands worldwide, which provides a significant competitive edge. This recognition translates into pricing power and customer loyalty across various demographics and geographies, ensuring a steady revenue stream even in challenging economic times.
Financial Health: McDonald's has historically maintained strong financial metrics, including low debt levels and substantial cash reserves. This financial stability allows for strategic investments, acquisitions, and share buybacks, enhancing shareholder value without risking the company's operational integrity.
Ongoing Growth Initiatives:
Digital Transformation: McDonald's has aggressively moved towards digital integration with systems like McDelivery, improved app functionalities, and the introduction of kiosks. This shift not only caters to changing consumer behaviors but also improves operational efficiency, potentially leading to higher margins.
Menu Innovation and Local Adaptation: Despite its global standardized menu, McDonald's has adeptly adapted to local tastes, introducing region-specific items that resonate with local consumers, thus tapping into niche markets while maintaining brand consistency.
Real Estate Value: McDonald's owns a significant portion of its restaurant locations. These properties, especially in prime locations, hold substantial real estate value, which acts as a hidden asset on the balance sheet, potentially unlocking value through sale-leaseback arrangements or property development.
Franchise Model: A majority of McDonald's restaurants are franchises, which significantly reduces the company's capital expenditure and operational risks. Franchisees bear the cost of new openings and ongoing operations, while McDonald's benefits from royalty income and franchise fees, creating a scalable business model with predictable cash flow.
Resilience in Economic Downturns: Fast food generally sees increased demand during economic downturns due to affordability. McDonald's, with its value-oriented menu items, tends to fare well in such scenarios, maintaining or even increasing sales volumes.
Global Expansion Opportunities: While McDonald's has a vast presence, there are still untapped markets and opportunities for growth in emerging economies. Expansion into these regions, coupled with the growing middle class in countries like China and India, could drive long-term revenue growth.
Health and Sustainability Efforts: McDonald's has been making strides towards healthier menu options and sustainability, which could appeal to a broader demographic, including health-conscious consumers and environmentally aware investors. Initiatives like reducing plastic use, sustainable sourcing, and healthier food options could improve brand perception.
Technological and Operational Efficiency: McDonald's continuous investment in technology for faster service, better inventory management, and supply chain optimization not only improves customer experience but also reduces costs, potentially leading to higher profit margins.
Market Recovery from Setbacks: Recent discussions on X highlight a belief in the market's quick recovery from the E. coli incident, suggesting that such events, while damaging in the short term, might not significantly derail McDonald's long-term trajectory due to robust crisis management and consumer trust.
Investment Sentiment: Despite occasional setbacks, McDonald's stock performance and analyst ratings often reflect confidence in its long-term prospects. The stock's recovery post-earnings and positive outlooks from analysts underscore a generally optimistic investor sentiment towards its future.
In summary, the bull case for McDonald's stock revolves around its robust brand, financial stability, strategic growth initiatives, operational resilience, and the untapped potential in global markets. These factors, combined with effective adaptation to consumer trends and economic cycles, present a compelling argument for McDonald's as a strong, long-term investment option.
McDonald's CorporationKey idea's supporting arguments:
• The decline in stock prices presents an excellent opportunity to open new positions.
• The company aims to enhance its value proposition by offering reasonably priced meals and modernizing its stores.
• The company’s valuations appear to be moderately positive.
Investment thesis
• Causes of the Recent Decline. McDonald’s shares dropped on Wednesday following a report from the Centers for Disease Control and Prevention about an investigation into an E. coli outbreak linked to burgers sold at McDonald’s in 10 states. NBC News reports that about 50 people have fallen ill, with 10 hospitalized and one elderly person with multiple medical conditions having died. The investigation is ongoing; however, McDonald’s has tentatively identified chopped onions added to the quarter-pound burger as the source of the outbreak (other burgers use different types of onions). Preliminary evidence from the FDA suggests that Taylor Farms might be the supplier of the contaminated onions. Historically, E. coli outbreaks affect a number of people, typically ranging from a few dozen to a few hundred (with a notable case involving a few thousand people in Germany). Considering this, we expect a transient impact on attendance and financial performance. So, other factors driving MCD should be considered.
• Local Demand Momentum. After weak traffic in the second quarter of 2024, market estimates for comparable sales in the third quarter have slightly improved, moving to -0.6% currently from -0.8% at the end of September. We believe that management will continue to focus on maintaining market positions in the short term. For instance, the $5 (four-component) offer has been extended to December, and temporary promotions like Boo Buckets and Crocs Happy Meal have been announced recently. It is also important to note that the market, based on consensus forecasts, anticipates the momentum of capital expenditure growth to continue into 2025 (+9.6% y/y) and 2026 (+17.2%). Part of these expenditures will be dedicated to opening new restaurants, with the company’s forecast assuming an increase from 41k restaurants in 2023 to 50k by 2027. The rest will be used to modernize existing locations, which could enhance the value proposition for customers. Additionally, there is market speculation about McDonald’s creating a permanent reduced-price offering and reintroducing menu items like the Snack Wrap in 2025.
• Valuations. The company’s valuation is neutrally positive, with a forward P/E multiple of 24, compared to the 5-year average of 24.7.
• Technical Outlook. Technically, the situation is favorable for growth: the $297-$301 range served as a resistance zone, and if the stock price remains above this level, a continued ascending trend can be expected.
The target price for the stock is $338, the recommendation is ‘Buy’. Stop-loss is recommended to be set at $277.
McDonald's (MCD) Stock Trades Below $300McDonald's (MCD) Stock Trades Below $300 Ahead of Earnings Report
The $300 level has proven psychologically significant for McDonald’s (MCD) stock:
→ In summer 2023, bullish investors failed to push the price above this mark, leading to a decline from $298 in July to $246 by October.
→ Again, in January 2024, the price briefly surpassed $300 but quickly dropped, eventually falling to $245 by July.
This autumn, it appeared the level had been breached when an uptrend (highlighted by the blue channel) lifted MCD above $315. However, reports of customer food poisoning incidents hit the news, causing MCD’s stock to plummet to $295 on October 23, making the orange channel more prominent in the technical analysis.
Analysts have subsequently downgraded McDonald’s ratings:
→ Guggenheim’s Gregory Frankfort downgraded MCD from “Buy” to “Neutral” on October 23, setting a target price of $285.
→ Baird’s David Tarantino followed suit, lowering his rating from “Outperform” to “Neutral” and adjusting his price target from $320 to $290.
Will MCD stock be able to reclaim the $300 mark? Much hinges on the company’s earnings report due out today, with analysts forecasting:
→ Quarterly earnings of $3.20 per share, a slight rise from last year’s $3.19 per share.
→ Quarterly revenue at $6.82 billion.
If investors react negatively to the report, it could push MCD below the critical $300 level and trigger a bearish break in the uptrend established since July.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Order Blocks 303Hint: McDonald's earnings report on Tuesday
From a technical perspective, McDonald's has broken the neckline, leading to short-covering and a rebound. It may either shift from an uptrend to a downtrend or enter a consolidation phase. The 303 level presents a good shorting opportunity.
MCD McDonald's Corporation Options Ahead of EarningsIf you haven`t bought MCD before the previous earnings:
Now analyzing the options chain and the chart patterns of MCD McDonald's Corporation prior to the earnings report this week,
I would consider purchasing the 290usd strike price Puts with
an expiration date of 2024-11-15,
for a premium of approximately $5.85.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
McDonald's CorporationHello,
Daily chart.
With a Fibonacci retracement, we arrive at the 0.382 zone.
The price is still above the 200-period simple moving average.
The chart shows the volume accumulation zones with the ranking.
A file to watch for me, but don't panic for now.
Make your opinion, before placing an order.
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McDonald's (MCD): New setback after quarter pounder incidentOne month ago, we predicted McDonald’s would push into the 127.2%-138% range at max, and now the stock is reacting precisely as we expected. Pre-market trading shows a 6% drop following the news from Tuesday.
The Centers for Disease Control and Prevention (CDC) has reported one fatality and ten hospitalizations linked to McDonald's Quarter Pounder burgers, resulting in the fast-food chain pulling the item from several menus. This incident has brought McDonald's stock back into its previous range, signaling that this wave (B) should mark the local top for now.
If we are correct, we expect to see a 5-wave structure downward from here. While there could be a brief relief pump, we anticipate the stock falling below the wave (A) level of $243. We are patiently monitoring the situation, and if a favorable short setup presents itself, we will share the entry details. For now, we are watching how the news unfolds and waiting on the sidelines.
Can a Single Onion Slice Reshape the Future of Fast Food?In a dramatic turn of events that has sent ripples through the quick-service restaurant industry, McDonald's Corporation faces a watershed moment that transcends mere food safety concerns. The recent E. coli outbreak linked to Quarter Pounder burgers, resulting in 49 reported cases across 10 states, serves as a powerful reminder of how seemingly minor supply chain decisions can cascade into significant corporate challenges. With shares plummeting 7% in after-hours trading, this crisis presents a compelling case study in crisis management, operational resilience, and the delicate balance between efficiency and safety in modern food service operations.
The revelation that slivered onions from a single supplier could potentially trigger such widespread impact challenges conventional wisdom about supply chain diversification in the fast-food industry. McDonald's swift response - removing Quarter Pounders from menus across several Western states and implementing immediate supply chain modifications - demonstrates the complex interplay between brand protection and operational agility. This situation raises profound questions about the industry's approach to supplier relationships and the potential vulnerabilities created by centralized sourcing strategies in pursuit of consistency and cost efficiency.
Beyond the immediate health concerns and financial implications, this crisis illuminates a broader narrative about consumer trust and corporate responsibility in the modern food service landscape. As McDonald's navigates this challenge, their response may well set new standards for crisis management and transparency in the industry. The incident serves as a catalyst for reimagining food safety protocols and supply chain resilience, potentially ushering in a new era where consumer safety and operational efficiency are not just balanced but fundamentally integrated into the fabric of fast-food operations.
MAC D updateDo you real have to loose each n every trades?ask yourself why do I real win most of my trades,less explanation following right trend all the time= 99%winning accurate,history of the market will never lie to you,if market is trending up for past 50 years why should you force to sell it draw a weird graphs,we'll yes market does pull back n sometimes for 6 mouths to 1 year but does this mean you.must draw n graph n arrows to 0000 like you saw it before happen while since you born you never see that market crash to zero don't dream opposite dream to the right directions a crash or pull back you use it to generate liquidity into position of uptrend market or down trend market,I can't wait for big pull back on stocks soo that I can buy more lower,that's the mindset you need not the way you think right now.
McDonald's sues meat giants for price manipulationMcDonald's - NYSE: MCD , has sued major meat companies, including JBS - BVMF: JBSS3,), Tyson Foods - NYSE: TSN, Cargill - (private, not publicly traded) and National Beef - (private, not publicly traded) accusing them of manipulating meat prices since 2015. According to the lawsuit, these companies would have intentionally reduced the supply of cattle to increase prices, which has affected McDonald's, raising the cost of its hamburgers. The fast food chain is not only seeking compensation for cost overruns, but is also asking the courts to put an end to these anti-competitive practices.
This type of accusations has already appeared in the past for these companies, facing lawsuits from producers and consumers. The outcome of this case could significantly influence meat markets and the food industry in general.
Highlights:
• McDonald's alleges price manipulation. It could affect the Q3 results presentation (10/29/24) which could send the company's shares to new highs. In any case DCM estimates for this third quarter seem to be higher than the previous quarter. Always the holiday period usually results in better results for restaurant companies.
• Companies involved: they are giants of the U.S. meat sector.
• Potential effects on meat markets. If the trial goes in favor of McDonald's, this could improve its balance sheet.
Technical aspect of McDonald's:
In recent weeks it has been recovering its price to the high zone since the last Q2 earnings release, higher than the Q1 quarter. The RSI indicator at 63.89% slightly oversold and using the Larry Williams indicator we see that the uptrend could continue for a while as it is still in the area of 122 points.
Ion Jauregui - Analyst ActivTrades
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BIG MAC UPDATEIs mac Donald adviceble to invest after breaks 300k,according to my view,you can take advantage of it or loose a chance my advice is if you wanna enjoy the ride,use proper money management n let the trade run until targets,it doesn't matter how long it takes,what is matter is what you think while you have running trades n money management.