Stock of the day: McDonald's
07 September 2023
McDonald's, one of the world's leading fast-food chains, has been on our radar for quite some time, especially following our last discussion on the 1st of September. Our initial examination drew attention to the formidable head and shoulders pattern depicted with a green hue on the chart. At the time, our eyes were set on the precarious position of the neckline — a breakout from which was deemed a pivotal moment in determining the future trajectory of the stock.
The anticipated moment arrived earlier this week. Tuesday signaled the initial attempt to break through, but it was on Wednesday that the markets bore witness to a decisive shift. The stock not only opened beneath the neckline but also concluded the trading session considerably lower, thereby confirming and activating the bearish sentiment we had initially speculated. This shift has cast a negative light on McDonald’s stock outlook for the near future.
With this, a pronounced sell signal has been triggered. For now, the prevailing sentiment leans bearish, and this standpoint will be maintained as long as the stock persists below the marked yellow region on our chart. Though a potential rebound above the yellow zone can't be entirely ruled out, given the current market dynamics, it appears to be a rather unlikely scenario. Investors and traders, thus, should exercise caution and vigilance in their next moves with McDonald's stock.