|

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:

Editor's Picks

GBP/USD dips below 1.3350 as USD demand surges

GBP/USD extends its intraday slide and closes in on 1.3300 in the American session on Thursday. The pair remains under heavy bearish pressure as the US Dollar (USD) benefits from the risk-averse market atmosphere amid escalating geopolitical tensions in the Middle East.

EUR/USD drops toward 1.1350 post ECB decision

EUR/USD remains under heavy bearish pressure in the second half of the day on Thursday and trades at its lowest level in three weeks below 1.1370. The ECB's cautious tone on policy tightening in the near future and the broad-based US Dollar (USD) strength on risk-aversion drag the pair lower.

Gold trims gains, dips to $4,050

Gold keeps retreating on Thursday, trading well below $4,100 early in the American session. US crude oil prices climb to a fresh six-week high above $90 amid a further escalation of tensions between the US and Iran, fueling inflation fears and bolstering US Fed interest rate hike expectations. Hawkish Fed bets weigh negatively on the yieldless bullion.

XRP Price Forecast: XRP trades sideways as Ripple targets 10 million agentic AI transactions
Ripple (XRP) is losing momentum on Thursday, albeit gradually, trading above $1.13. The remittance token tagged a weekly high of $1.16 on Tuesday, with gains mainly attributed to developments on the United States (US) Clarity Act and recent signs that inflation is easing in the world’s largest economy.
Bitcoin falls as surging Oil prices revive inflation concerns

Bitcoin extends its correction, trading below $65,800 after a modest decline in the previous day. Despite BTC’s fading strength, US-listed spot Bitcoin Exchange Traded Funds continued to attract institutional inflows on Wednesday, marking the seventh consecutive day of gains.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?
The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.