McDonalds shareholders are certainly not "lovin it" right now because the stock is in a long-term downtrend and it is one of the worst performing stocks in the Dow Industrials. The chart below shows the 50-day SMA below the 200-day SMA and the stock below the 200-day SMA. The breakdown started with a lower high in mid June and a big gap down. The stock then consolidated with a triangle and is breaking the triangle trend line today. More after the jump.
A small triangle is considered a continuation pattern and the prior move was clearly down. This makes the triangle a bearish continuation pattern. Today's break looks like confirmation and chartists can set key resistance in the 119-120 area. The indicator window shows MACD edging into positive territory on Monday-Tuesday and moving back into negative territory today. It also looks like momentum is turning down.
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--Arthur Hill CMT
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