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MCD Stock Price Analysis: Can McDonald’s Stock Crash More?

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MCD Stock Price Analysis: Can McDonald's Stock Crash More?
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MCD stock price has been bearish on the charts in the past 1 month. Bears are in control and the price has lost 4% in August. McDonald’s stock witnessed profit booking from the round level of $300 and declined.

MCD stock price dropped below 50-day showing a short-term trend reversing down. However, the 200 EMA halted the momentum of decline, and the price currently struggles to break below it. 

Moreover, the price is close to the recent support zone which might be the entry point for buyers. Looking over the daily chart it may be observed that the price has been in an uptrend. The daily chart exhibits the price to follow a breakout followed by a consolidation and repeating. 

Analysts say that the price is in a strong uptrend in the long term and is currently in a pullback phase forming a falling wedge pattern on the MCD daily chart. The price may gain the support of buyers from the lower level to resume the ongoing trend. 

The Analysts offering a 1-year price forecast for McDonald’s Corporation have a max estimate of $383 and a minimum estimate of $300. Mcdonald’s Corporation engages in the operation of franchising of restaurants. The company has a wide operating chain in the U.S. as well as internationally. 

MCD Stock Price Analysis: Can McDonald's Stock Crash More?
Source: barchart.com

MCD stock option-chain analysis states that the current implied volatility in the market is 12.67% with an increment of 0.41% in the last trading session. The nearest support at $280 has an OI of 877 on the PUT side and 21 on the CALL side indicating the complete domination of buyers at the recent support.  

MCD Stock Price Nearing Previous Demand Zone

MCD Stock Price Analysis: Can McDonald's Stock Crash More?
Source: McDonalds Corporation 1D. NYSE By TradingView

The MCD stock price currently trades at $281.15 and consolidating near the recent support level. The derivatives data indicates the domination of buyers at the recent support which signals that the price may possibly reverse from the recent support to resume its long-term trend. 


However, the breakdown of the recent support of $278 may weaken the uptrend, and the stock may show a drawdown in intraday.

The EMAs Showing A Golden Crossover On the Daily Chart

MCD Stock Price Analysis: Can McDonald's Stock Crash More?
Source: McDonalds Corporation 1D. NYSE By TradingView

The daily MCD stock price chart shows that the price could not sustain above 50 and 200 EMA indicating a short-term domination of sellers in the market. The overall Technical Opinion rating including RSI and MACD is signaling a 24% sell with a strengthening short-term outlook on maintaining the current direction.

Conclusion

MCD stock price has been falling in August, losing 4% and breaking below the 50-day EMA. The price is near the support zone of $278, which may attract buyers to resume the long-term uptrend. The price follows a falling wedge pattern on the daily chart, which is a bullish sign. Analysts have a max estimate of $383 and a min estimate of $300 for the next year. The derivatives data shows buyers’ dominance at the support level. However, if the price breaks below $278, the uptrend may weaken.

Technical Levels

  • Support levels: $278.33 and $270.55.
  • Resistance levels: $291.11 and $299.64.
Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

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