Swing Trade Idea (MCD) – May 6, 2021
Our bullish trade for Thursday, May 6th is McDonalds Corp (MCD). MCD is part of the Discretionary Sector (XLY). XLY has experienced a 0.9% gain in the last month and its 6M trend turned bullish on March 30th.
MCD recently broke above the $230 resistance level and retested. Its 1M and 6M trend turned bullish on March 6th and with a technical score of 4 (out of 10), MCD is a weak stock that will likely move higher from these levels.
As a stop loss, if MCD were to trade below $230 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $3.61.
