jgdub

McDonald’s is in love with the 50 monthly moving average.

Long
jgdub Updated   
BATS:MCD   McDonald's Corporation
This is the only TA you need for McDonald’s. It’s a consistently strong stock that has only had two red yoy returns in 20 years, and in those 20 years its average drawdown is 12%. We dropped 14% from the year at 288 to 247 and bounced near the 50 MA. I expect this to consolidate for several days or weeks potentially but price target is 300 before EOY.


Positions:
131 shares @ 259/share
20 contracts 300c March 2025 @ 4.74/ea
Comment:
I cannot believe how bullish we ended this week and I am beyond happy for it.

We closed above the following:

1 hr 200 MA
Weekly 200 MA

And we have formed a giant engulfing daily candle.

I have also added to my position when we had that melt down from 261-258 as well as some calls at 254

07/19 270 C 7x
09/20 300c 27x

And I also bought 30 more shares
Trade active:
Today was a disappointing end to a good start of the week. I honestly expected us to break past 260 at some point but instead we got a huge sell off.

It wasn’t just MCD. Both SBUX and DIS, large consumer sector pillars, also took a hit.

We are still looking decent on weekly and monthly time frames. I would not be concerned just yet. If we drop below 250 I’d consider sizing out of the position with a loss and attempting to average back in at a lower cost.

But the bounce from 253.8 to 255 was much needed confirmation of some strength and support. For now we wait and hope next week we get a strong open and finally push over 262.

Do keep in mind earnings is this month and McD has projected a strong earnings QoQ.

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