McDonald’s(MCD) is seeing a pretty aggressive sell-off, and notice that price is accelerating after breaking below the trendline of the higher degree diagonal. This suggests bearish momentum is picking up, and weakness could continue after any rebound. We are likely in extended wave A, with five waves down underway, after the recent drop from wave four rally that perfectly stopped at resistance at 290-283, We are now ina fifth wave, time for shorts to go out or trail, and be ready on the next wave B rally.
So overall, this looks like a trend change to the downside, and the move is likely not finished yet.
Highlights
• Bearish momentum accelerated after the break below the higher degree diagonal trend line.
• Wave A appears to be unfolding as a five wave decline.
• The wave four rally stopped perfectly at the 290 to 293 resistance zone.
• Current weakness may be approaching the final stages of wave five.
• Shorts may consider taking partial profits or trailing stops.
• Any wave B rebound is likely going to be corrective and could be followed by another leg lower in wave C.
Become a premium member
Get daily Elliott Wave updates for US Single Stocks, SP500,DAX, GOLD, SILVER, CRUDE, FX, CRYPTO, etc. or apply for unlimited access to the Elliot Wave educational videos.