Stock of the day: McDonald's
02 March 2023
In today's update on McDonald's, it appears that we may be very close to a major sell signal. Yesterday, the price tested a key, long-term support, and the long-term outcome of this is still unknown.
After an impressive October, MCD has been in a slightly bearish sideways trend since November, during which time the price established a key horizontal support and a key dynamic resistance. The first one is the 38.2% Fibonacci retracement level (shown in yellow), which has supported the price since the end of the year. The second one is the downward trendline (shown in red), connecting lower highs since mid-November.
Yesterday, MCD tested the support, and buyers managed to keep the price above it, which is a positive sign. However, the battle is not over yet, as the general sentiment in the market remains negative, and we can assume that sellers will try their luck again today and possibly tomorrow. In my opinion, the chances for a bearish breakout are quite high, and once the breakout occurs, we will receive a legitimate signal to sell.