[Review Update] McDonald’s Corporation – +7.5% in two weeks

In my previous analysis done two weeks ago, I’ve indicated that McDonald’s Corp (NYSE:MCD) will be a good buy for mid to long term.

From $115.18 per share on 16th Jan, yesterday it has closed at $123.78 per share. A 7.5% push northwards in two weeks.

For comparison of how well McDonald’s did in the last two weeks, the best performing being S&P500 went from 187.8 to 193.7 (+3.1%), Dow Jones Industrial Average from 15988 to 16466 (+3.0%), Hang Seng Index from 19520 to 19683 (+0.8%), while STI Index remains stagnant at $2630 level.

However I am totally bewildered at how little local page views the previous blog post received. I’m really not sure why but I will gladly appreciate if someone could entertain me as to why Singaporeans are not keen on trying out historically proven trend trading with technical analysis or investing in stocks in the NYSE Market with much lesser risk of manipulation? These are facts I believe in. Maybe it’s just me, but I know I am right with it and it suits my personality towards reaching my financial goals.

Now onto updates on McDonald’s.

 

WEEKLY Chart for NYSE:MCD (Click to view full image)
WEEKLY Chart for NYSE:MCD (Click to view full image)
MONTHLY Chart for NYSE:MCD (Click to view full image)
MONTHLY Chart for NYSE:MCD (Click to view full image)

 

Review of NYSE:MCD

What has happened in the last week has created a really really good monthly candlestick closure for Jan16.

For tech traders in the know, yes it’s a well created bullish engulfing pattern. For layman, it shows that the bull strength held really well throughout Jan16, broke through Dec15’s highest point, and closed ABOVE it. Closing above it is really important as it shows it not only created higher high, but it manages to close at the new high due to little short-sellers, many buyers. Basic demand and supply?

Based on my experience trading FOREX pairs for past two years, this bull could last for at least another 2-3 months, or maybe many more.

 

And for the record, while FX is a very volatile market and changes trend every now and then, Stock market on the other hand is totally different. Most stocks can trend for years and consolidate for years, which is why I was emphasising and surprised why so little investors in Singapore do not buy into this yet.

Trend trading using technicals, with low to mid-low risk on your capital, you should reap rewards of around a mid to mid-high risk level. Again, just opinions based on my past experiences of 400+ live trades in the past 2 years, which I’m sure I’ve more types of trades to experience. But one thing I’m confident to say I’m good at, is my dominance in every emotions of trading. I think I might just write a special article/ebook of my experiences in trading so far just for my blog subscribers.  😉

 

As in my previous review, I’ve recommended in my opinion to enter on breakout closure above $120 per share level, I still trust that entries made from this point forward will still be profitable.

Do let me know what other stocks/FX pairs you would like me to review on and I’ll try my best to do over the weekends when I book out of camp. 🙂

 

Regards,
The Independent Abecedarian

 

Disclaimer: All ideas and recommendations are based on the writer’s best opinions and experiences. The writer shall not be liable for any loss of sort from actions taken by the reader as there is no guarantee of profit of sort.

 

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2 thoughts on “[Review Update] McDonald’s Corporation – +7.5% in two weeks

  1. Hi! I’m also a fellow investor in McDonalds. I started building a position when it broke out at around $110. Currently I buy a few shares each time on dips. The main concern I have is that the rise has been quick and steep, and not sure if a violent correction may occur. I think Singaporeans are vested in the more popular stocks like Facebook and Amazon.

    Anyway, what’s your long term target price for McD? I’m just glad that McD has given us an early CNY ang pow 😀

    1. Hi James,

      That’s an awesome entry haha! Too bad my trading account wasn’t opened then 😉

      Regarding your concern, I am a believer of patterns and I believe that characteristics of a stock’s movement always repeats itself. If you look at W1 Chart above, retracement has always been short and sweet since the breakout over $105 while the incline became even steeper compared to past weeks. This shows gained strength and confidence in NYSE:MCD, which is why I indicated that the trend might last for a couple longer. 🙂

      And I guess you’re right that most Singaporeans who invest bet their money in well-known stocks that they think will rise in stock price while hoping to get some dividends on the way. However these ways are almost impossible to backtest and experience the emotions within the different trades, which is why most fail to beat the market. TA, trend and swing trading on the other hand are different by being able to be backtested in any market condition and instrument in any platform. Plus point, they are proven historically to work too!

      As for target price for MCD, honestly I do not have a specific exit target as I’ve learned to not predict the market but to understand the market. Never try to tame a wild lion, but always give in to its power and take what it is willing to give you. But that being said, I do have levels I set to look out for. To either upsize my positions, or partially exit my positions, or maybe even to fully liquidate all of them to fund some vacation trip 😉 Currently the levels to take note for MCD based on my TA are: 125, 133, 146.

      Sure it does give us an early ang pow and I hope for a really big one to close for this haha 🙂

      Regards,
      The IA

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