McDonald's stock, upside is limited

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Old Jul 22, 2011, 3:37pm   #1
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McDonald's stock, upside is limited

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as this final push terminates we should have a move back to arround 60 dollars a share, that would be the first place I would look for ,perhaps, temporary support. Watch it closely over the next month or so, see if any of your setups allow you to short this stock.

Last edited by afarghaly9; Jul 22, 2011 at 7:10pm.
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Old Jul 22, 2011, 3:59pm   #2
 
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Re: McDonald's stock, upside is limited

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Originally Posted by afarghaly9 View Post
as this final push terminates we should have a move back to arround 60 dollars a share
why?
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Old Jul 22, 2011, 5:05pm   #3
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Re: McDonald's stock, upside is limited

afarghaly9 started this thread According to the elliott wave principle once a 5 wave move is complete as visible from the extreme low in the chart you can expect prices to make it back to the wave (4) vicinity which was a triangle, In elliott theory triangles occur before the final move in the wave sequence that strengthens the odds of this interpretation. 60$ is a good area to eye for support which could prove lasting or temperory depending on the price structure the market gives us. Just keep that in mind thats all, we are at typical targets for the final push, it could extend further but if prices sell off rapidly I'm gonna look to short with a minimum target of 60$. If prices do reverse soon as expected see if your setups allow you to short wiether it be a trendline break etc.

Regards,
Ahmed Farghaly

Last edited by afarghaly9; Jul 22, 2011 at 5:13pm.
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Old Jul 22, 2011, 5:16pm   #4
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Re: McDonald's stock, upside is limited

afarghaly9 started this thread and if you own this stock, personally i would cover all stock exposure right now, It seems like the market will experience another deflationary shock. Regardless of what the fed does, all markets, from a wave prespective points towards a revisit of 2008 soon, better be a few months early than a minute late
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Old Jul 22, 2011, 5:21pm   #5
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Re: McDonald's stock, upside is limited

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Originally Posted by scose-no-doubt View Post
why?
Because the RSI said so innit

Seriously, 2q figs beat analyst expectations:
http://uk.reuters.com/article/2011/0...11+PRN20110722

Possible flies in the ointment are asia sales not growing as fast - chinese wage increases, and subway taking over as biggest chain...
http://www.bbc.co.uk/news/business-12673441
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Old Jul 22, 2011, 5:29pm   #6
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Re: McDonald's stock, upside is limited

afarghaly9 started this thread
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Originally Posted by Liquid validity View Post
Because the RSI said so innit

Seriously, 2q figs beat analyst expectations:
http://uk.reuters.com/article/2011/0...11+PRN20110722

Possible flies in the ointment are asia sales not growing as fast - chinese wage increases, and subway taking over as biggest chain...
http://www.bbc.co.uk/news/business-12673441
I'm not saying the top is in but if we rally higher i see us toping out soon, a decline is inevitable and it will not be because of MCdonalds data rather a flee from risk. a close bellow the purple trendline visible on this chart should be confirmation enough that the move towards the wave (4) green is underway.
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Old Jul 22, 2011, 5:47pm   #7
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Re: McDonald's stock, upside is limited

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Originally Posted by afarghaly9 View Post
I'm not saying the top is in but if we rally higher i see us toping out soon, a decline is inevitable and it will not be because of MCdonalds data rather a flee from risk. a close bellow the purple trendline visible on this chart should be confirmation enough that the move towards the wave (4) green is underway.
What risk? - McDonalds is a defensive and by and large got away quite well during 08, ranging most of the year between $50-$66.

Thats why I don't understand this "flee from risk".
McDonalds undoing will be changing eating habits & Subway from where I'm standing.
Even then, I wouldn't rule out MCD evolving to take back market share from Subway by offering a competing and equivalent menu.
What exactly is the flee from risk you refer to if not MCD financials?
BTW, I'm not dismissing your idea of a retrace, far from it, MCD has had a bloody good run
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