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Elliott Wave Financial Price Forecasting

McDonald’s Elliott Wave Update

by m.tamosauskas| September 12, 2014 | No Comments

In recent updates, the McDonald’s Corp. was described as unfolding into an expanding flat pattern that requires a lower low below 92.22 with ideal downside targets measured towards 90.65-90.58 (published on July 25, 2014):

‘The recent acceleration to the downside suggests the prolongation of the counter-trend decline that began from the April ’13 high of 103.70 whilst unfolding into an expanding flat pattern, labelled a–b–c– in minute degree with ultimate downside targets measured towards 90.65-58.

Once these downside targets have been tested, await a reversal signature to confirm the resumption of the larger uptrend with targets to new all-time highs.’

140725_McDonalds

Well, this week the downside objectives were met at 90.53 and was followed by an immediate response to the upside:

140912_McDonalds

This is a good example that even in oversold broader market like U.S., we can always find stocks that offer good risk/reward ratio and huge upside potential.  It is worth quating the legendary trader Jones Paul Tudor: ‘I look for opportunities with tremendously skewed reward-risk opportunities. Don’t ever let them get into your pocket – that means there’s no reason to leverage substantially. There’s no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities.’ It is not a secret that he was a big Elliott Wave enthusiast! And this theory is capable to spot such a trade setups.

This might the one!

Category: McDonald's
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WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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