McDonald’s Hammered After Earnings

By Nick Santiago of InTheMoneyStocks.com

President & CEO Chief Market Strategist at IntheMoneyStocks.com • Oct 24, 2019 at 2:15 PM EDT

Yesterday, leading fast food restaurant stock, McDonald’s Corp., plunged lower after reporting earnings and failing to meet Wall Street expectations. Today, MCD stock is trading below its important 200-day moving average.

Yesterday, leading fast food restaurant stock, McDonald’s Corp (NYSE:MCD), plunged lower after reporting earnings and failing to meet Wall Street expectations. The company did increase its quarterly dividend by 8% to $1.25/share, this move did not really help with the weakness in the stock.

Today, MCD stock is trading below its important 200-day moving average.

This is usually a signal that more downside is in the cards for the shares in the near term. The next major support level for MCD stock will be around the $190.00 area. This is a level where the stock broke out in April 2019. Often, when prior break-out levels are back-tested they will serve as excellent support. This is an area where the institutional money will generally defend equity. I will be keeping this name on my radar for a long side trade around the $190.00 level.

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