Shares of McDonalds
Cp (NYSE: MCD) Headed Lower Says Market Timer Frank Kollar
June 29, 2006 (FinancialWire) (By Frank Kollar)
On June 13 th, shares of McDonalds Cp (NYSE: MCD) closed
at $31.94 after a precipitous three-day sell-off. The bounce
that followed appeared to mark a low that would become
a solid support level from which shares might start a sustained
advance. But yesterday’s close at $31.97 puts McDonalds
right back on the edge.
The company, which operates and franchises McDonald's
restaurants in the food service industry, has restaurants
in more than 100 countries around the world. McDonalds
also operates Boston Market and Chipotle Mexican Grill.
During the last half of 2005, McDonalds tacked on a solid
31%. Wednesday’s close is a full 50% retracement
of the entire rally and it also marks the second test of
support. Should this support level fail and McDonalds has
a decisive lower close, shares could quickly decline to
$31.00 a share and possibly as low as $29.56 a share before
new support is found.
Shares of McDonalds should be avoided until the stock makes
a close above $33.70 a share. FibTimer.com (http://www.fibtimer.com)
has had a SELL signal in place for McDonalds in its Stock
Trading Strategy since May 22, 2006.
Frank Kollar has been timing the financial markets since 1982, with online
service since 1996. He is a dedicated trend timer and his strategies exited
the markets before the crash in 1987 as well as the bear market in 2000 through
2002. During the 2000-2002 bear market, his bearish positions resulted in gains
exceeding 100 percent, all achieved by trading trends.
Kollar’s research has shown that the financial markets
are in tradable trends approximately 80 percent of the
time. FibTimer strategies define trends and trade them
in both advancing and declining markets. Caring nothing
about what newscasters say or what the latest economic
indicator predicts, trends are where the profits are, and
that is where FibTimer is.
Kollar is editor and chief analyst at FibTimer.com (http://www.fibtimer.com)
which offers market timing strategies for S&P and Nasdaq
index fund traders, as well as bond, gold, small cap, sector,
ETF and stock trading strategies.
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