McDonald’s (NYSE:MCD) made a top in January and fell back to a low at the beginning of March. It bounced from there, quickly retracing 38.2% of the move lower. It continued to a 61.8% retracement before stopping, and then bounced in a channel between the two Fibonacci’s for a total of about 8 months. It pushed over the top for good in October and completed a full retracement, continuing up to a 138.2% extension of the move. The fall from there found support at recent levels and has been consolidating.
The RSI is pulling back and is now at the mid line while the MACD is falling but remains positive. There is support lower at 181.25 and 178.70 then 173.30 and 168.40 before 166.50 and 163. There is resistance at 188 and 190.90 above. Short interest is low at 1%. The company is expected to report earnings next on January 28. It pays a dividend yielding 2.58% but just recently began trading ex-dividend.
The December options chain shows the biggest open interest at the 190 strike above, with some size at the 185 call and the 165 put as well. January options see the biggest open interest at the 165 put and then the 190 put. On the call side it is biggest from 185 to 200. February options, covering the next report, are still building open interest but it is focused at 160 and 170 on the put side, and 195 on the call side.