Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Crude oil spikes on US inventories report

News

Does Apple have more room to run?

News

Gold spikes to new highs on Fed remarks

News

GBP/USD price may correct lower

News

Goldman Sachs’ stock surges on upbeat Q2

News

Caution ahead of Netflix’s earnings?

Trends & Analysis
News

Crude oil spikes on US inventories report

News

Does Apple have more room to run?

News

Gold spikes to new highs on Fed remarks

News

GBP/USD price may correct lower

News

Goldman Sachs’ stock surges on upbeat Q2

News

Caution ahead of Netflix’s earnings?

Asset Watch

Should you munch on McDonald’s?

Thursday, November 2, 2023

Consumers showcased their strong appetite for McDonald’s on Oct. 30, as the fast-food chain outperformed analysts’ estimates on both the top and bottom lines. And with global same-store sales up by 8.8% vs. 7.8% expected, higher menu prices fueled revenue growth. CEO Chris Kempczinski said:
“We’ve tried to be very disciplined on how we have executed those price increases….. And we’re seeing really no change at all in terms of customer acceptance pass-through on pricing, which to me is also an indication that the teams are striking the right balance.”
Moreover, Wells Fargo analyst Zachary Fadem told clients on Oct. 30 that “catalysts are coming” and “we see a solid MCD setup into FY24.”

Thus, while the stock has been under pressure over the last few months, could the Big Mac maker make a big comeback? If so, monitor a key technical level.

 

For example, the stock’s 100-week moving average provided long-term support from January through March 2021, from March through July 2022, and a quick recovery occurred after the breakdown in October 2022. Therefore, as McDonald’s attempts to recoup $265.13, a breakout could be the cue to open a long position.

 

In addition, the stock’s weekly RSI (the black line at the bottom) recently hit its lowest level since the 2020 pandemic-induced sell-off. Consequently, there could be plenty of upside if the metric reverts back to its 2023 highs.

 

So, will it soon be time to order McDonald’s, or will the 100-week MA remain resistance?


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.