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McDonald's (McD) Likely to Dip Further

McDonald's $MCD was bullish throughout 2017 and into January, but started to slide as general market sentiments turned bearish. While the general market has rebounded a bit, MCD still looks heavy and likely to find a lower low before rebounding. 

MCD Daily Chart

(click to enlarge)

200-day Simple Moving Average:
- We can see that price came down to the 200-day simple moving average (SMA) at the start of February.
- For the most part, even though price dipped below this SMA, price eventually rallied back up to stay above the 200-day SMA.
- However, by the end of last week, price was able to close under the 200-day SMA.
- The inability to push above $168 and the 100-day SMA adds to the bearish outlook.
- We should anticipate a test of the 154.30 low. A break below that opens up the 151.85 and 148.20.
- Essentially we can expect price to test the psychological level of $150 before anticipating any support.