Besides the fact that McDonald’s (MCD, $94.84, off $0.47) plans on adding wings to their menus…is there anything else that tells us it could be putting in a low soon???
I have to say yes via my work. I see both key timing parameters for a possible intermediate low that come due between now and the first week in September AND we are currently testing a relatively important support zone in this stock. The support comes in at $92.83 – $93.93.
Now with that being said….. in this environment I do want to be careful on the long side. For this reason I would wait for a buy trigger to fire off on a 30-minute chart that would tell me that it is worth placing a low risk bet on the buy side. If there is NO trigger…then there is NO trade entry. Risk can be defined below the low end of the price cluster zone. Guidelines below.
With the lower end of the band ~$93 or a shade lower, maybe the purchase of MCD September $92.50 strike calls, or the Extended Weekly’s for September 27th expiration with the $92.00 strike could give you upside with limited risk.