Shares of McDonald's (MCD) are mixed Thursday as traders digest the company's latest quarterly figures.
In our Oct. 27 review of McDonald's we wrote that "MCD is looking stronger now versus earlier this year so traders could go long MCD at current levels risking a decline to $234. On the upside look for $335." Unfortunately the strength only lasted until early January with prices failing around $270. Prices have pulled back towards the rising 200-day moving average.
Let's look closer.
In the updated daily bar chart of MCD, below, we can see that the shares have pulled back towards the rising 200-day moving average line and trade below the cresting 50-day line. Trading volume has increased on the decline.
The On-Balance-Volume (OBV) line has weakened this month telling us that sellers of MCD have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator has moved below the zero line for an outright sell signal.