McDonald's Corp. (MCD) is not feeling the love as a rollout of the McRib sandwich has not inspired buyers of the stock Wednesday.
We looked at the charts of MCD on Nov. 9, writing that we were not fans of the stock since Sept. 25 and adding that the "daily Point and Figure chart of MCD ... still suggests a downside price target in the $191 area."
Let's check on the charts again.
In the updated daily bar chart of MCD, below, we can see that the shares peaked out in October and have started a downtrend. MCD is trading below the bearish 50-day moving average line. The 200-day moving average line is flat and intersects just below $200, which is not all that far away.
The On-Balance-Volume (OBV) has been weak the past two months and tells us that sellers of MCD have been more aggressive. The Moving Average Convergence Divergence (MACD) moved below the zero line in early November for an outright sell signal.