|

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.

More from Lawton Ho
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.

Crypto Today: Bitcoin, Ethereum, XRP pare gains despite increasing hopes of upcoming Fed rate cut

Bitcoin is steadying above $91,000 at the time of writing on Friday. Ethereum remains above $3,100, reflecting positive sentiment ahead of the Federal Reserve's (Fed) monetary policy meeting on December 10.

Week ahead – Rate cut or market shock? The Fed decides

Fed rate cut widely expected; dot plot and overall meeting rhetoric also matter. Risk appetite is supported by Fed rate cut expectations; cryptos show signs of life. RBA, BoC and SNB also meet; chances of surprises are relatively low.

Ripple faces persistent bear risks, shrugging off ETF inflows

Ripple is extending its decline for the second consecutive day, trading at $2.06 at the time of writing on Friday. Sentiment surrounding the cross-border remittance token continues to lag despite steady inflows into XRP spot ETFs.