OptionsPlay DailyPlay

The bearish DailyPlay we chose for Wednesday Nov 2nd is McDonalds (MCD). MCD is part of the Consumer Discretionary Sector (XLY). Over the last month, XLY has experienced a 3.05% move lower and it’s 1m and 6m trend turned bearish on 10/25 and recently broke below its its $78 support level.

McDonald’s 1m and 6m trends turned bearish on 9/28 and has recently broke below its $113 support level which it is currently retesting as resistance. With a technical score of 2 (out of 10), MCD looks positioned to continue this strong bearish trend lower.

View this Trade Idea on MCD

As a stop loss, if MCD was to trade above $113 for multiple days, this would invalidate our analysis and suggest getting out of the trade.