Having broken below the 50 day moving average - MCD has now descended to the 200 day and also, pushed below the lower Bollinger band, stretching the range. What now for this stock? Will the 200 day moving average act as support or will the bears claim the day? On the six month chart, we see the stock at the 200 day and threatening to re-enter the longer term down channel that claimed MCD for most of the last year.
A look at the one year chart shows more detail. The stock broke out of the down channel and got caught in a wedge formation after doing so. A break to the downside out of that wedge tells me it's likely the 200 day will not hold. However, likely isn't fact. Watch that red line in the sand. A break below it will put the stock back into that down channel.
Current MCD rating = HOLD