MDO trade ideas
MACDONALDS IS DOWN(My first language is Spanish, I apologize if I write wrong)
I have only three years of experience in trade, 90% of my trades are good, I hope will be helpful and see if what I predict happens, good trade!
$MCD With earnings tomorrow, will the trend continue?Let's take a long term look at $MCD on this chart.
Fundamentally this is obviously a strong company. In brief, net income has decreased from 2011, but we can see the price has made all time highs regardless.
The consensus estimate for earnings tomorrow (released during pre-market) is $1.16. A decline from the previous quarters earnings.
This stock has been in a strong Bull trend since 2004. If we defined trend as dipping below the 50 period moving average than this stock has stayed in trend for a longtime, really only making significant moves below the 50 period moving averages during periods of consolidation.
Price exited a 4 year period of consolidation. It has been on a bull run for the past year, with minor consolidation along the way up. A continuation of the trend would provide great opportunities for a long term trade. The best way to trade this would be a Bullish candle pattern confirmed with rising volume.
The turning point on MCD?The quotation has reached the upper boundary of the rising channel.
Reasonable to expect the beginning of reversal formation. NYSE:MCD
Break-Outs To All Time Highs: Part 1, MCDRemember the old TV Show "Superman"? It started by the announcer saying..."It's a bird. No, it's a plane. No, it's Superman". I started this narration by pointing out that sometimes XABCD patterns are not perfect, but if you examine them closely, they give you clues as to upside breakouts to all time highs. This is the chart of McDonalds. It had been going sideways for three years. After the mini-crash in August of 2015 I noticed an imperfect XABCD pattern in MCD. Just as superman was not a bird or a plane, I did not find a perfect Gartley, bat, butterfly, or crab. BUT, what is important was I recognized a very bullish pattern, XABCD, and I used a C to D impulse leg Fibonacci projection to realize that this might be a 2618 trade. The lower indicator is Vortex, and, in a sideways market, this will go red over green, and then back. Very seldom will this indicator stay positive (green over red) unless there is a new trend starting. The rest is history, as McDonalds went on to 2.618 Fibonacci and all time highs. THIS WAS A MOVE FROM $88 TO $124. Yours for better trading, Don.
MCD: Bat patternWe would take this trade only because of the bearish tendency of the overall market.
Will this gap be filled?As long as share price is below 2016 Feb high, or otherwise there is a structural change, minimum target is to refill the gap
$MCD a beast today, testing important resistance$MCD is powering through resistance at the upper bound of its bull channel from late October. A close above 120.10 is very bullish. I'm still targeting 122 with some JAN 120 calls.
MCD testing resistance at 120MCD is testing resistance at 120, which coincides with the 27% fibonacci extension as well as the upper-bound of its bull channel. We're targeting the 122 level for an exit.
DOW JONES OVERVIEW: MCDONALDS IS FLAT LIKE ITS HAMBURGERS...McDonalds trades flat both on long term and short term basis.
On long term perspective price is now in lateral range after it failed 10-year uptrend, by falling below 1st standard deviation from 10-year mean @ 100 (now the range upper border). The lower border of the macro lateral range is marked by 5-year mean, standing now at 92.5 - MCD has tested and held this level during the august selloff.
On short term basis price is now trading within 1st standard deviations from 1-year and quarterly means. As it can be seen on the chart - both channels are themselves lateral at the moment.
Options Put Writes on MCDThinking to write some weekly puts on MCD around 92-94 strike for income
daily ATR (7) historically = 2
