CHICAGO, IL – Shares of fast-food giant McDonald’s Corp (NYSE: MCD) ended Thursday’s session in the red after a promising morning rally was completely erased by a wave of afternoon selling, signaling a weak footing for the stock heading into next week.
McDonald’s closed the trading day at
1.25 (0.41%). The day began with significant buying interest, with the stock surging from an open of
305.11**. However, the momentum reversed sharply after noon, and the stock trended consistently lower for the rest of the day, falling to a low of $301.15. After-hours trading was completely flat, with the stock showing no change.
Analysis and Outlook for Monday:
The narrative for McDonald’s on Thursday was a classic case of a failed rally. The inability to hold the significant gains from the morning is a strong bearish indicator, suggesting that sellers overwhelmed the early buying enthusiasm. The stock giving back nearly all of its $4 intraday gain to close near its lows shows a clear shift in sentiment.
The lack of any buying activity in the after-hours session further cements this negative outlook, as there was no late-day attempt to buy the dip. Therefore, the outlook for McDonald’s for Monday’s market open is bearish.
Investors should expect the negative momentum to carry over. The stock is likely to test its intraday low near $301.15 when trading resumes. The day’s high of $305.11 will now serve as a significant level of resistance.
