The quotation has reached the upper boundary of the rising channel. Reasonable to expect the beginning of reversal formation. NYSE:MCD
Short at: 114.27 Short Date: Nov 25 2015 Target Price: 100 Stop Loss: 118 Profit Potential: ~15% Time frame: 3 months or less
In the linked post we sold MCD between 95 to 98 and were looking for a decline to 83 at the weekly trendline. MCD fell to 87.6 and then recovered. Now I believe it presents another selling opportunity. The move between 97 to 87 looks impulsive and the move up looks like the first leg of a three wave correction. Between 93.5 to 97.4 presents a good selling range...
This trade setup is pretty simple and doesn't require any rocket science. McDonald's, or MCD, is a component of the DOW30. MCD has been in a trading range on the weekly chart for quite some time now. We are currently at the bottom of this range, providing an excellent opportunity to get long. I'm using covered calls in this name to get long the stock at as cheap a...