TopOptionAlert
$MCD NOV20 250C · still actionable
Zone: $240.97 to $244.37
Invalidation: close under $234.23
Objectives: $253.16, then $275.26
The math: up 4.3% to the first objective and 13.4% to the second, against 3.5% risk on the invalidation, better than 3 to 1 to the second
Dear friend, picture a big old ship that took on water for months and finally stopped sinking. That is this swing setup in plain terms. McDonald's fell to $229.20 on October 5 and has climbed since, up 3.16 percent in five days, holding today's low at $240.01 while earnings on November 4 sit just ahead like a lighthouse that can pull attention back in. What that means for you is simple. The selling looks tired above that October low, and there is open room back toward $253.16 first and the higher ground above it, while a close under $234.23 would say the bounce has failed and you step aside.
P.S. Watch $245.85. That was the high on October 16, and a close over it would show buyers are willing to pay up again, not just defend the low.
2
4
