MCD stock price formed a head and shoulders pattern. The first part of a head and shoulders pattern is an uptrend, bounces making a first top (left shoulder), then it goes down and makes a minimum.
Now that the left shoulder has formed, the price moves higher and makes a second top (HEAD), higher than the left shoulder, then it goes down and makes another minimun similar to the first one.
Draw a line between the two minimum prices to form the neckline and project it.
The left shoulder and the head have formed, now, the price moves up again and makes a third top similar to the first one forming the right shoulder. Then the price goes down.
To confirm the head and shoulders pattern, the price should close below the neckline. At this point you should make a short. The profit is the distance between the head and the neckline
In some cases you can see a pullback. This could be a second chance to short the stock.
Now that the left shoulder has formed, the price moves higher and makes a second top (HEAD), higher than the left shoulder, then it goes down and makes another minimun similar to the first one.
Draw a line between the two minimum prices to form the neckline and project it.
The left shoulder and the head have formed, now, the price moves up again and makes a third top similar to the first one forming the right shoulder. Then the price goes down.
To confirm the head and shoulders pattern, the price should close below the neckline. At this point you should make a short. The profit is the distance between the head and the neckline
In some cases you can see a pullback. This could be a second chance to short the stock.