McDonald's barely held above it's 50 DMA, which is an area of importance in the short term as the stock's moving averages had just recently crossed over in a positive direction (the 50 day moving average will be above the 200 day in a stock with bullish momentum) - however, if the stock suffers any more selling pressure, this short term bull signal will not hold.
What do I see in the short term? Watch 95 as a general level. If that level doesn't hold, the moving averages will flip in a bearish way and the stock will head lower. Seeing as this bounce was largely on the basis of the CEO stepping down and not on any concrete numbers to show company wide improvement, combined with the recent announcement to raise wages, I wouldn't be in a rush to buy MCD here.
Rating - HOLD. Look to buy at lower limits.
That said, MCD is currently yielding 3.5% dividend - buying isn't the worst thing you can do with your money.
What do I see in the short term? Watch 95 as a general level. If that level doesn't hold, the moving averages will flip in a bearish way and the stock will head lower. Seeing as this bounce was largely on the basis of the CEO stepping down and not on any concrete numbers to show company wide improvement, combined with the recent announcement to raise wages, I wouldn't be in a rush to buy MCD here.
Rating - HOLD. Look to buy at lower limits.
That said, MCD is currently yielding 3.5% dividend - buying isn't the worst thing you can do with your money.