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McDonald's: Look for Consolidation to Take Place


Eight things MCD's chart is showing.

Today's chart is of McDonald's Corp. (NYSE:MCD) which franchises and operates McDonald's restaurants in the global restaurant industry. Its restaurants offer various food items, soft drinks, coffee, and other beverages. The company operates approximately 34,000 restaurants in 120 countries around the world.

Click to enlarge

Strategy: Look for consolidation to take place.

What I Am Looking At:
  • Upside gap this morning after reporting that global sales rose 2.4% in November
  • Underperforming, down more than 8% year-to-date
  • Up nearly 8% since its 11/16 52-week low
  • Shares are back to lower gap area from mid-October negative earnings reaction, possible area of resistance
  • 200-day moving average could also serve as potential resistance
  • Friday, 12/7 saw a large number of call adds at the 90-strike which could be acting as a roadblock for shares
  • 1.3% of the float is sold short, less than two days to cover
  • Ten "strong buy" ratings and three "buy" ratings versus 11 "hold" ratings among analysts

This article by Tony Venosa was originally published on Schaeffer's Investment Research.

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Twitter: @schaeffers
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