MCD is struggling to form a short-term bottom at a non-support level. The stock had been under heavy distribution which triggered High Frequency Traders selling short as well as Pro Traders selling short, even while new Retail App Broker Investors were buying into the downtrend. Buy on the Dip strategies are in play, but the large lots overwhelmed the retail small lots. There is no Dark Pool Quiet Accumulation in this bottoming attempt.
does the 205 line show support buy dip area? 208 was suppor fot mvs al week, does that mean still support? also s&p is at all-time highs so it's correcting and possibly moving sideways to accumulate to digest a little while. So wondering if that would keep McDonald's from going higher, even though some are saying all-time highs coming soon.
MarthaStokesCMT-TechniTrader
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@RobFlorio, The line at 206 is a resistance level where profit-taking is a risk due to the previous topping action above (which occurred due to Dark Pools selling). Buying on a dip occurred between 189 and 198, to form the short term bottom, which caused the speculative run up.
RobFlorio
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are yyou saying that there's no interest in buying the dip at support?that's odd. Why do you say that?
MarthaStokesCMT-TechniTrader
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@RobFlorio, Support is below the current price, where buyers moved in before; resistance is above the current price, where profit-taking becomes a risk because sellers sold at that level before.
RobFlorio
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@TechniTraderTraining, cool so ur waiting for it to go down to support 199-203?
MarthaStokesCMT-TechniTrader
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@RobFlorio, Waiting for a pullback to see if another entry signal forms near the support would be reasonable. Just remember that the resistance around 209 may continue to be a profit-taking point.