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Why McDonald’s could be heading lower

As we head into tomorrow morning’s earnings release for McDonald’s Corporation (MCD), I’ve been closely reviewing the chart and overall price action. Right now, MCD is trading along an upsloping trendline that has been respected for months, and when I look at the technicals, that structure currently favors a potential move lower.

This trendline can be drawn by connecting the stock’s low from June through its lows in October and extending that line through yesterday’s closing price. When a stock approaches earnings at the top of a technical level like this, I always prepare for both scenarios — but in this case, I’m leaning toward a possible pullback.

To provide some quick background, McDonald’s has long been recognized as one of the most established and globally known brands in the fast-food industry. Its business model, iconic brand presence, and wide consumer reach have made it a familiar name across markets. With that kind of history, MCD tends to draw strong attention from traders and long-term investors alike around key events like earnings.

From a price-action standpoint, what stands out to me most is the support zone I’m watching if price does break lower. Should MCD sell off on earnings, I am anticipating a potential reaction near the $283.50 level, which lines up with its low pivot from June. That area has served as a meaningful reference point before, so I will be watching it closely to see if buyers try to step in and defend it again.

As always, whenever I trade around earnings — especially on names with strong brand awareness and higher volatility — I rely on disciplined preparation and risk control. Earnings can move names like this quickly, so proper risk management is key. I’ll be staying patient, letting the chart play out, and adjusting accordingly once the reaction becomes clear.

Author

Lawton Ho

Lawton Ho

Verified Investing

A marketing expert sharing his journey to mastering the charts.

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