Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
McDonald’s Corporation (MCD stock) price witnessed selling pressure and has fallen below the significant moving averages and split the round level of $250 in the last trading session. Moreover, the price action shows an aggressive selloff, and buyers have started unwinding long positions due to fear. Furthermore, the chart structure shows the double top pattern near $290 and a breakdown of the lower trendline was noted in the past sessions. Based on the technicals, if MCD stock fails to hold onto the $240 level, it will drag to the $200 level in the following sessions.
Furthermore, MCD stock has retraced more than 20% from the top. Moreover, the options chain suggests that, at the strike price of $250, a massive open interest of 2130 hundred shares on the put side indicates that long positions were trapped. Sellers won the battle, whereas, at the strike price of $255, the open interest of 266 hundred shares on the call side indicates a strong resistance zone.
At press time, MCD stock price was $248.22 with an intraday drop of 1.59%, showing bearishness in yesterday’s trading session. Moreover, the trading volume increased by 1.23% to 5.90 Million, and the market cap is $180.894 Billion. Furthermore, analysts maintained a buy rating with a yearly target price of $327.76, suggesting a significant upside for the following sessions.
McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain, and the U.K. The International Developmental Licensed Markets and Corporate segment comprises developmental licensee and affiliate markets in the McDonald’s system.
Will MCD Stock Regain Momentum or Fall to $200?
On the daily charts, MCD stock price corrected from the highs of $300 and witnessed selling pressure in the past sessions. Moreover, the price action showcased that buyers have lost momentum and faced throwback from the mighty bears who have persisted in adding short positions. Furthermore, MCD stock dragged below the 50% Fib zone, is close to the 38.2% Fib zone, showing panic selloff, and is on the verge of the lower Bollinger band.
The RSI curve stayed in the oversold region and showed a bearish divergence, floating negative sentiments for the past sessions.The MACD indicator shows a bearish crossover and red bars on the histogram, suggesting further downside toward $200 in the upcoming sessions.
Summary
McDonalds (MCD stock) price is below the round mark of $250 and fell below the significant moving averages. Furthermore, the price action showcased seller dominance and suggests that selling pressure will continue and MCD stock will retest the demand zone of $200. MCD stock, if it stays at the $250 level, would bounce and retest the 20-day EMA in the upcoming sessions.
Technical Levels
Support Levels: $240 and $220
Resistance Levels: $255 and $260
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/07/mcd-stock-nyse-mcd-price-falls-will-mcd-retest-200/