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Jay

McDonalds breaking down... even further.


On September 11, I mentioned that "something changed for McDonalds ($MCD). The stock not only broke down of its uptrend channel, in place since March 2019, but also broke its rising 50 daily moving average. All this happened on heavy volume, 2.3 times the average daily volume, also known as ADV. The RSI hinted on a bearish divergence for more than a month now." (see related post - chart added here for your convenience)

Here's the updated chart where you can see how the price broke down since.

$MCD daily chart

This downtrend accelerated after the earnings report, which was amplified by heavy volume (circled in red) and the price breaking below its 200 daily moving average.

The RSI is now in oversold territory which could ignite a relief rally. Any bounce might be short lived as a lot has been broken in this chart.

The next support is around the $180 area.

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