As you can see, MCD has run into its macro resistance, at a current price of 298.47. This is the third time MCD has tested this upwards sloping resistance line. Each of the previous two tests led to a sharp sell-off.
Not only is MCD reaching this upwards sloping resistance, but it is also very over extended. For this reason, my bias is bearish, and we can likely expect a sell-off from this level.
I will continue to monitor this chart, and will update you all as I see fit. Trade safely!
Agreed Gareth. In fact, with the exception of the covid lows, it's been in a long term bear channel over the same time period. When considering the extreme RSI, recent sharp, rapid rise, and the fact that we are past any earnings season surprise, the probabilities suggest we will soon see a strong sell off. That said, I've been surprised at the strength of this past 6 months bullish run. It's been much more entrenched than I would have expected. As always, appreciate your postings.
jona-fra
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inthemoneystocks member. Of course I agree. I think it could go up a little higher too though to another parallel channel's upper range. Either way, lots of resistance no doubt.