MCDD trade ideas
Interesting support and resistance lines.Note that the breakout to the downside is support, and the next stop down is just about a textbook target....then earnings; this should be interesting. Especially in light of MCD's history of rising the last quarter 11 out of the last 13 years. And the fact that news related events have caused this set up across the board in large part...can it even be trusted at this point?
McDonald’s: Where to buy for a long term investment.MCD (McDonald’s Corporation) has been trading within a very strong 1M Channel Up (RSI = 70.206, MACD = 17.720, Highs/Lows = 10.6514), which as seen by its technical action is on the Higher High zone.
Based on its historic volatility within the Channel Up, we expect MCD to pull back for a Higher Low towards 190 before resuming the uptrend. A potential Death Cross (MA50 under MA200) should come as confirmation of a sideways phase (bottom is in) and a Golden Cross (MA50 over MA200) as confirmation of the next bullish leg.
The RSI pattern seems to also be cyclical and in that sense we have hit the Higher High and are in anticipation of the Higher Low. Our long term Target is at least 240.00.
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MCD t.a. update +Q4 goalsTaking a look @ MCD price history on the 1WK time frame, labels show a potential pattern correlation of long term uptrends, where the EMA21 level acts as a major support at least 1x before the uptrend reverses. Doesn't mean that it's 100% going to happen again but historically patterns do have a tendency to repeat themselves, and the current price action is just coming out of that critical EMA21 support area. Worth noting, since the idea further supports current trade set up from previous MCD post, but more importantly, this will be great to use as a reference during post-trade review.
*Side note/Q4 goals update.
My Q4 focus is to build & reinforce a really strong foundation/core of my trading profile, using the fundamentals that are absolutely critical to long term success as a trader. Everyone has their own strategies, but If you are taking the time to read trade ideas like this then I'm sure you can relate to how important research and studying are when aspiring to become a trader at the professional level. Everyone says they want to be a trader, but it seems like very few are actually willing put in the hard work required to get there. This is an insanely complex occupation to pursue, but at the same time such an incredible opportunity as a career choice. I look forward to re-reading quarterly updates like this 1 year, 5 years, 10 years, etc from now & measuring the progress. I see so many great ideas flowing through the tradingview feed on a daily basis, and every trading experience just helps refine and improve trading efficiency. Big thanks to those that contribute quality content on a regular basis. Just happy & grateful to be a part of it all.
Wishing everyone the best of luck in Q4, see you in the green at New Years
MCD t.a. updateMCD update, daily chart labeled w arrows where SMA100 has acted as a major support. Price action also shows a nice gap up from friday's close. The open was above the ema21, signaling intermediate bullish momentum may continue. Intraday chart is also showing signs of potential bullish momentum, as price is currently retesting EMA50 level (previous known resistance). If intraday price closes above EMA50 it could signal a potential LONG entry. If LONG entry confirms, update stoploss to "trailing stop loss" @ any close below the EMA10.
Target exit remains 65-70 RSI level @ +4%
MCD t.a. & set upMCD is showing signs of an overall long-term uptrend pattern, & is currently trading above the SMA200, signaling a possible long entry. On the daily chart, possible cup and handle also forming after a significant pullback occured early/mid September. Also, last session the price opened above, and closed above the EMA21, signaling a potential intermediate uptrend is likely if price continues to consistently close above EMA21 level. Additionally, The EMA5 recently crossed up & above the EMA10, signaling short term bullish momentum. Considering this combination of confirmed and pending signals:
A good entry might be; if the price breaks above and closes above the SMA50 level.
*another option could be to take an initial entry if Monday opens above the EMA21, and then add to position if price breaks/closes above the SMA50
A stop could be set at: any close below the EMA21 @ -1%
A good target exit might be best at: Known resistance @65-70 RSI area, or any close below the EMA10 level @ +4%
Risk/Reward ratio optimal @ 4:1
Moving averages say buy, but the market says ? MCD usually does quite well from Sept to the end of the year (up 11 of the last 13 years I believe). But if the market crashes....well let's just say that buying on Friday could be a mistake, regardless of what the moving averages are saying (read between the dotted lines). Is it just me, or has all of the reactions to news events made this a common pattern this year; and if so should we ignore it?
