A Short Setup for McDonald's

I hope that the Mayan calendar shift brings us new fast food places that don't serve fried pink slime and call it nutritious. McDonald's (MCD) is currently into a very important resistance zone. With that in mind, I'm betting on the short side in this one. That being said, I might be too early on my entry and I will explain why by showing you more than one time frame chart for this stock.

Let's take a look at the daily chart. A vote for this bearish case comes with price being below the 200 SMA. The 50 SMA does not support it, however. It is better when both the 50 and 200 SMA's support a trade setup, but it is not a deal breaker. The sell setup is based on symmetry with the prior rally swings on this daily chart. On the daily chart, I have illustrated the prior rally swings that I have used in this analysis. The ones I measured were $7.40, $7.85 and $7.94. I projected 100% of these prior rallies from the November lows and have come up with a resistance decision at the $90.71-$91.84 area. This zone includes three 100% price projections along with a .786 retracement. Now, I did see a sell trigger against this zone on both the aggressive entry chart (15-minute) and the regular swing trade trigger chart (30-minute). So I bought puts and my maximum stop is above the recent high made at $90.85....407 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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