McDonald's (MCD) Stock Trades Below $300 Ahead of Earnings Report
The $300 level has proven psychologically significant for McDonalds (MCD) stock:
In summer 2023, bullish investors failed to push the price above this mark, leading to a decline from $298 in July to $246 by October.
Again, in January 2024, the price briefly surpassed $300 but quickly dropped, eventually falling to $245 by July.
This autumn, it appeared the level had been breached when an uptrend (highlighted by the blue channel) lifted MCD above $315. However, reports of customer food poisoning incidents hit the news, causing MCDs stock to plummet to $295 on October 23, making the orange channel more prominent in the technical analysis.
Analysts have subsequently downgraded McDonalds ratings:
Guggenheims Gregory Frankfort downgraded MCD from Buy to Neutral on October 23, setting a target price of $285.
Bairds David Tarantino followed suit, lowering his rating from Outperform to Neutral and adjusting his price target from $320 to $290.
Will MCD stock be able to reclaim the $300 mark? Much hinges on the companys earnings report due out today, with analysts forecasting:
Quarterly earnings of $3.20 per share, a slight rise from last years $3.19 per share.
Quarterly revenue at $6.82 billion.
If investors react negatively to the report, it could push MCD below the critical $300 level and trigger a bearish break in the uptrend established since July.
Read more: https://fxopen.com/blog/en/oa-mcdonalds-mcd-stock-trades-below-300-ahead-of-earnings-report/
Text source: Forex Trading Blog
