McDonald's (MCD): Time for a Correction!

vor 3 TagenWe predicted it back in March, and sometimes you have to give yourself a pat on the shoulder when things play out exactly as expected. A little over six months ago, we said that Wave (A) would likely hit $245.88, and what did we get? $244, which is less than a 1% difference from our target. After that, the stock surged by 24% to what now seems like another high.

Now we find ourselves back at the range high, and we must treat it with caution. Since March, we've been hoping for this exact scenario to unfold, but we're not ready to jump into a short position on MCD just yet! The rise has been pretty strong, and we're seeing the RSI hovering around the overbought area. Given this price level, we could either see a smaller pullback before heading higher—possibly up to the 127.2%-138% Fibonacci extension—or MCD could fall lower after losing the mid-range level.

In both scenarios, we would like to see lower prices as we still haven't concluded Wave II. We’ve zoomed in on the chart now, but whether we’re right or wrong, we’ll zoom back out to reevaluate when the time is right.

This serves as the perfect reminder that good things take time 🚀.